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How do I pay taxes when I work from home?

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I am a stay-at-home mom and I watch two other children during the day. I get paid about 1,000 a month cash. Do I need to pay taxes each month or just file taxes at the end of the year? And if I need to pay each month, how would I go about that? I live in Oregon.
As a general rule, the IRS considers all income earned to be taxable (unless it falls under some kind of exception). Businesses generally need to pay estimated taxes quarterly, so you and your accountant need to work out a plan for taking care of that...especially as you're paid in cash.

Your bigger problem, though, is that you may be considered to be running a day care business without a proper license. It would be worth your time to speak to a local business attorney to ensure that you're not running afoul of any state laws or regulations.
Nina Kaufman

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Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under her Ask The Business Lawyer brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes the Making It Legal blog.