Tax Withholding And Estimated Tax
August 21st, 2007
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Question: Do I need to pay estimated taxes on babysitting money?
I will be earning $60/week. I believe I do, even though I know that most people don’t. We can’t really afford to pay taxes, because we need this money, but I don’t want it to catch up with me if we don’t pay. I will also be working a part time job where the taxes are automatically withheld. It really ticks me off when I see tax money going to special interest groups and projects and just being spent so much when our government is already in debt.
Answer: Do you know if your client is reporting your payments? They might try to claim them. Though I think you can only claim baby sitting if it is every day, like daycare, so the parents can work. You can't claim if it is just for movie or date night.
Are you being paid cash? If that is case, you would probably get away without claiming. If that is your only job, then maybe you will make 3000 this year, and that is probably less than your federal exemption.
You can file on your own if you like--the right thing to do, but I would not worry about paying estimated taxes. You have to make a lot more money than 3k a year! You will probably get a refund since the amount is so low.
State tax delinquents can pay debt with reduced penalties
A limited state tax debt payback program will allow tax delinquents in New York to pony up what they owe with reduced penalties and interest.
KENGEN: PIBO closes
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