Sunday, July 08, 2007

Babysitting and Taxes

Self-employment tax is not at all obligatory for your daughter. But customarily individuals should pay the tax if their net earnings from self-employment are nearly $400 or more. Special exceptions for kids are also applicable. In your daughter's case, teenage babysitters are normally considered as employees, so they are exempt from paying self-employment tax. There's also a specific exemption for newspaper carriers who are under the age of 18. If a child under 18 is functioning as a household worker for part-time such as babysitters, gardeners, for housecleaning or repair work, or anyone who is employed in or around someone else's home etc, he or she is also exempt from the Social Security tax. Not only them, but also children who work in their parent's unincorporated business and are of age under 18 are also let off from the Social Security tax for sure.

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