Do I Need to File a 1099 for My Babysitter?

Hiring a babysitter often brings up questions about tax responsibilities. The answer depends on whether the person caring for your children is, for tax purposes, an independent contractor or your employee. This classification is the first step and dictates all subsequent tax actions you may or may not need to take.

Determining Your Babysitter’s Worker Status

The classification of your babysitter as either a household employee or an independent contractor is a determination based on IRS guidelines. This status is not a choice but is decided by the “right to control,” which examines the degree of direction you have over the worker. The IRS breaks this test down into three categories: Behavioral Control, Financial Control, and the Relationship of the Parties.

Behavioral control focuses on whether you have the right to direct and control how the babysitter does their job. If you provide detailed instructions about how to care for your child, such as setting specific schedules for naps, meals, and playtime, this indicates an employer-employee relationship. Supplying the tools and equipment, like toys, highchairs, and strollers, for the sitter to use also points toward them being an employee. Conversely, a sitter who uses their own judgment and methods to care for the child, without detailed instruction, may be seen as an independent contractor.

Financial control examines who directs the business aspects of the job. An independent contractor is more likely to have their own business, offer their services to the general public, and have a financial investment in the equipment they use. If you dictate the hourly pay rate and the sitter does not have significant unreimbursed business expenses, they are likely an employee. A sitter who sets their own per-job price, advertises their services, and can realize a profit or loss from their work is operating more like an independent contractor.

The relationship between you and the sitter is the final component. A continuous, ongoing relationship where the sitter works for you indefinitely suggests an employee status. If there is a written contract that describes the relationship and the services performed are an aspect of managing your household, this also points toward an employee classification. A babysitter hired for a single, specific occasion, who does not receive benefits like paid time off, is more characteristic of an independent contractor. In most cases, a babysitter providing regular services in your home is considered a household employee.

Required Information and Tax Forms

If Your Sitter is an Independent Contractor

If your babysitter is classified as an independent contractor, you are not required to issue a tax form. The requirement to file Form 1099-NEC for nonemployee compensation only applies to payments made in the course of a trade or business. Since paying a babysitter is a personal household expense, you do not need to file this form, regardless of the amount paid. However, the babysitter is still legally required to report all income they receive on their own tax return.

If Your Sitter is a Household Employee

If your babysitter is a household employee, different rules and forms apply. These tax requirements, often called “nanny taxes,” are triggered when you reach certain payment thresholds. For 2025, if you pay a household employee cash wages of $2,800 or more, you must withhold and pay Social Security and Medicare taxes. If you pay total cash wages of $1,000 or more to any household employees in any single calendar quarter, you are responsible for paying federal unemployment tax.

The employee must complete Form I-9, “Employment Eligibility Verification,” to confirm they can legally work in the United States. You must keep this form for your records. While you are not required to withhold federal income tax, your employee can request it by completing Form W-4, “Employee’s Withholding Certificate.” As the employer, you will use Schedule H, “Household Employment Taxes,” to report and pay federal employment taxes, and you will need an Employer Identification Number (EIN) from the IRS.

The Filing Process

For a Household Employee (Schedule H)

The filing process for a household employee is integrated with your personal tax return. Schedule H is not filed by itself; instead, it is attached to your annual Form 1040, “U.S. Individual Income Tax Return.” The total household employment taxes calculated on Schedule H are then transferred to your Form 1040 and included in your total tax liability. The deadline for filing Schedule H is the same as your personal income tax return, typically April 15, and payment is made with your regular income tax.