I earned money cleaning house for a friend but they are not reporting the expense. how do I file?

Forum|Forum|6 years ago
June 7, 2019
5 replies
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I cleaned house for a friend and was paid in cash each week. He won't be claiming the expense on his taxes, but I feel like I should be paying taxes on the income. How would I file? I have the same situation with another friend I babysit for..

TurboTax Deluxe Online

SweetieJean

Employee

Your friend cannot claim housecleaning expenses, as they are not deductible in any case.

Adrienpadovani

Household employee.

SweetieJean

Employee

<a rel="nofollow" target="_blank" href="https://www.irs.gov/taxtopics/tc756.html">https://www.irs.gov/taxtopics/tc756.html</a>

Hal_Al

Employee

Your other friend most likely will be claiming the day care credit and will ask for your Social security number. If so, the IRS will know about that income

Hal_Al

Employee

The IRS considers undocumented cash income (no W-2 or 1099-MISC), for work performed, to be self employment income. Enter at "Business Income & Expenses" and TurboTax (TT) will complete Schedule C or C-EZ for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security) on any profits greater than $400.

There is an exception to income from babysitting and house cleaning being subject to self-employment tax.. You have "household employee" wages. If no single employer paid your more than $2000, and you sat/worked in their home, not yours, you may be able to avoid the self employment tax. But, you will also not get credit for these wages with the Social Security Administration, for future benefits.

You may have to upgrade to the Self Employed version of TT for self employment income

Pj8

If I have a child I always get child credit but this year I cleaned house for a older lady and baby sitting for a friend and made say around 2000 for cleaning and 1200 for baby sitting in there home all year will I have to pay in and my son lives with me all year as always can I still claimchild earn income and be ok or will I have to pay in

xmasbaby0

Employee

@Pj8 You have had self-employment income for which you will owe self-employment tax for Social Security and Medicare. You report this income and any expenses you had related to it on your tax return (cleaning supplies, etc?). If you are the custodial parent of a child then you may get some child-related credits like earned income credit and a little child tax credit.

However, you earned very little from working. How were you and your child actually supported? Is there someone else who supported you that can be claiming both of you as dependents? You did not support yourself and a child all year on barely over $3000.

When the Free File software is available that is what you should use to prepare your return. It becomes available in January.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Adrienpadovani

You can ask him for a 1099 though he would have to get an ein from the irs to pay you as a household employee. But, just claim the earnings as self employment. And save recipets for any items used to clean.