Question

I have a question about childcare provider taxes. If I’m a childcare provider without a W-2, how do I file taxes for childcare income I earn?

Answer

The IRS usually considers childcare providers as independent contractors. Since independent contractors are self-employed, you should report your income on Schedule C.

Also, if your income minus expenses from self-employment is more than $400, you must file Schedule SE. This will determine your taxes for childcare.

However, if a state health and welfare agency pays you to care for the children of public-assistance recipients, you’re performing chore services, which will change the childcare provider taxes ramifications. Since the state agency controls your wages, it should issue you a W-2 and withhold your childcare provider taxes. However, if you receive a Form 1099-MISC, do both of these:

  • Enter the payments as wages.
  • Attach a statement to the return explaining the nature of the payments.

Related Topics

Related Resources

1098-T and American Opportunity Credit

Learn whether you can claim the American Opportunity Credit if you received a 1098-T form from your dependents college with advice from H&R Block.

Qualifying For The Nonbusiness Energy Property Credit

Can you claim your new A/C or heating unity as a nonbusiness energy property credit? Learn more from the tax experts at H&R Block.

Home Equity Loan Tax Deduction

Learn more about the home equity loan deduction and get tax answers at H&R Block.

How Does Changing Jobs Affect Your Tax Return?

Changing jobs can come with tax implications like job search and moving expense deductions. Learn more about these potential benefits at H&R Block.