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Tax Planning/Housekeeper trying to file without W2

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Question
I clean house for a couple every two weeks.  Each time I clean I get a $75 dollar check.  That is $150 a month and $1800 a year.  I miss approximately 3-4 cleanings per year, so my take home income is between $1500 and $1600.

Im sure that the couple I clean for claim the cleaning but I still don't get a W2.  

Other than child support, the cleaning is my only income.  I want to know if I'm going to be able to file and get the EIC and also claim my two young children.

If I can, is this something I can do online or will I need to put out the money to actually go to a CPA?

Thank you in advance.
Kate

Answer
Hi Kate,

As a housekeeper you are not a household employee and will not receive a W2.  You will file a Schedule C as a business and this will make you eligible for the EIC.  This is something you can do on your own, but the question are you comfortable enough to do it. The EIC is going to be between $200-$500 based on how many kids you have.  So you could end up paying $100 or $200 in tax prep and only getting a little more back. Just a decision you need to make.

So you know it is not a question of whether you should file you are required by the IRS code.

Hope that helps.  

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Chea Romine, CPA

Expertise

I am a CPA and Managing Partner of a medium sized CPA firm. I specialize in all areas of tax including personal, partnership, corporate, trust, estate and non-profit. We have multiple CPA's in the office that also bring insight or expertise into the questions. I also manage our accounting division and our business consultation division.

Experience

Managing Partner of a medium sized CPA firm with 6 CPA's and other support staff. Tax planning is our second largest divison in our firm.

Organizations
AICPA, Ohio Society of CPAs, National Society of Tax Professionals

Education/Credentials
Certified Public Accountant

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