Question

How much can I make as a daycare provider before I am responsible for reporting child care income?

Answer

If you provide daycare services with the intention of making a profit, you’re considered self-employed and responsible for reporting child care income. So, report self-employment income and expenses on Schedule C. If your net income minus expenses is $400 or more, you’ll also need to:

  • File Schedule SE
  • Pay self-employment taxes

Related Topics

Related Resources

Taxable And Tax Free Sources Of Income

Learn about the different sources of income and determine which ones are taxable and which are tax-free from the experts at H&R Block.

How Do I Withdraw Excess IRA Contributions?

If you’ve contributed too much to your IRA for a given year, you’ll need to contact your bank or investment company to request the withdrawal of the excess IRA contributions. Depending on when you discover the excess, you may be able to remove the excess IRA contributions and avoid penalty taxes.

Holding Period

What is a holding period? Learn more about an investment holding period and get tax answers at H&R Block.

Taxes on Prize Winnings and More!

When you come into surprise money, you have to pay taxes on prize money. Learn more with the tax experts at H&R Block.