All electronic payments on Bambino are processed through a trusted third-party payment system and are reported on your 1099-K form. According to the IRS, income earned from babysitting, whether on a regular basis or only periodically, is taxable. The best practice is to always report your income regardless of how it is earned.
As a Bambino Sitter, your earnings are processed through our third party payment processor, Braintree, a division of PayPal, Inc. PayPal tracks your earnings, and at the end of the year, PayPal will generate a 1099-K Form if you meet the following requirements for 2021:
At the national level, the threshold for receiving a 1099-K form is:
1. Gross payments that exceed $20,000; AND
2. More than 200 completed transactions
Several states have a threshold much lower than the national requirements.
1. The Illinois Department of Revenue requires users to receive a Form 1099-K at the end of the year when at least three transactions are processed and gross payments total $1000 or greater.
2. The Massachusetts Department of Revenue, Vermont Department of Taxes, and Virginia Department of Taxation require users to receive a Form 1099-K at the end of the year when gross payments total exceeds $600.
You will receive a copy of the Form 1099-K and PayPal, Inc. will submit a copy to the IRS to report your earned income. You might be requested to provide a W9 if Bambino does not have all information necessary to complete a valid 1099-K.
For more information, visit the IRS website to read about gig economy workers and 1099/W9 information. If you are a dependent, and still claimed on another person's tax filing, more information on filing your earned income can be found here. If you still have questions on how to file your earned income, please consult a tax advisor.
You can view your reservations in your app: Bookings > Confirmed > View History.
Please note that the IRS has not yet updated guidelines for 2022 and Bambino will update this FAQ accordingly. We encourage you to consult with a qualified tax professional for any additional information.