How Child Care Providers File Their Taxes?

To file taxes as a nanny or caregiver, follow these steps:

1. Recognize that you are an employee, not an independent contractor.
2. Fill out Form W-4 before your first day of work.
3. Keep track of your hours and pay.
4. Track your part-time work too.
5. Get your W-2 form(s) by January 31.
6. File your taxes by the April 15th deadline.

If you’ve been paid under the table, you still owe taxes. To prepare for taxes, download a free tax preparation checklist for childcare business owners and use it to compile the necessary documents.

If you are paid by a state health and welfare agency to care for children of public-assistance recipients, you should report your income on Schedule C. If your income minus expenses from self-employment is more than $400, you should file Schedule SE.

As a provider, you must report all income you receive for caring for children, even if you don’t meet or haven’t yet completed local or federal taxes. If you qualify for the credit, complete Form 2441, Child and Dependent Care Expenses, and attach it to Form 1040, U.S Individual Income Tax Return, Form 1040-SR.

In Part I of Form 2441, report the names of individuals and organizations you make payments to during the year for care provider services.