If you earn more than the amount of the personal exemption allowed by the Canada Revenue Agency within one tax year, you will need to report that income on an annual tax return. Most casual babysitters will not earn enough income from babysitting alone to owe income tax. Parents who hire you to babysit do not need to take any deductions off your pay, as they are not considered “employers”. Similarly, you are not considered an employee. Instead, you are considered an “independent contractor”. If you think you might earn more than the personal exemption in a tax year, you may want to put some of your income away to pay the income tax when it becomes due. The parents of the children you are babysitting may still want a receipt from you, as they may be able to use it for their income tax return. Last Reviewed: August 2019