When people think of taxes, they often picture W-2s, income statements, and employment forms. As a stay-at-home mom (SAHM), you might think taxes don’t apply to you—especially if you don’t bring in a paycheck. But the reality is, there are different types of taxes that still affect your life, your household, and possibly even your financial future.
I am not a tax professional, and tax regulations can vary by location and change over time. It’s important for stay-at-home moms, like anyone else, to consult with a tax professional or use reliable tax software to ensure accurate and up-to-date information. However, here are some general considerations for stay-at-home moms in the United States:
Stay-at-home mom taxes
1. Household Tax Filing (Federal Income Tax)
Even if you’re not working outside the home, your household still files a federal income tax return—usually jointly with your spouse. This tax is based on your family’s combined income, deductions, and credits.
Here’s what it means for you:
- Your Stay-at-home moms need to determine their filing status (usually “Married Filing Jointly”) influences your tax bracket.
- If the stay-at-home mom has children, your household may qualify for tax credits like the Child Tax Credit, Earned Income Tax Credit, and Dependent Care Credit—all of which reduce your overall tax bill.
- If your spouse is working and you’re not, your family still benefits from the full standard deduction.
2. Self-Employment Tax
Do you sell crafts, offer online services, babysit, or blog for income? If you earn more than $400 a year from any small business or side gig, you’re considered self-employed—and that means self-employment tax applies to you.
Self-employment tax includes:
- Social Security (12.4%)
- Medicare (2.9%)
That’s a total of 15.3% on your net earnings.
What to do:
- File Schedule C (Profit or Loss from Business)
- Keep track of your business income and expenses
- Set aside money to pay taxes quarterly if needed
3. Sales Tax (When You Sell Products or Goods)
If you run a small business selling products (handmade items, digital downloads, etc.), you might be required to collect and remit sales tax depending on your state laws.
Each state has different rules about:
- What’s taxable (e.g., physical goods vs. digital goods)
- Whether you need a seller’s permit
- Filing frequency (monthly, quarterly, or yearly)
Tip: Check with your local tax authority or use tools like TaxJar or Avalara to automate sales tax collection if you sell online.
4. Property Tax (If You Own a Home)
As a SAHM, you’re likely managing the household budget. If your family owns a home, you pay property taxes—either directly or through your mortgage payments.
Why this matters:
- Property taxes affect your family’s monthly housing costs.
- They can sometimes be deducted on your federal return (if you itemize deductions).
Understanding how property taxes work can help you plan your budget more effectively.
5. State Income Tax
In addition to federal income taxes, many states also require state income tax returns. Even if you’re not working, you’ll still be listed on your joint state return (if applicable).
Some states:
- Offer tax credits for families
- Require income reporting for self-employed spouses
- Have specific rules for small business owners
If your spouse works in one state and you live in another (for example, remotely), make sure you understand the tax rules in both locations.
6. Retirement and Investment Tax (If Applicable)
Are you contributing to a Spousal IRA or managing investments for your family? While this may not apply to every SAHM, it’s important to know that:
- IRA contributions may offer a tax deduction.
- Investment income (dividends, interest) must be reported on your joint return.
- Capital gains from selling property or stocks can impact your taxes.
Even if your spouse handles these finances, staying informed can help you make empowered decisions for your family’s financial future.
7. Child-Related Tax Benefits
These aren’t taxes you pay—they’re tax benefits you can receive, but they directly affect your tax situation:
- Child Tax Credit
- Dependent Care Credit (if you pay for childcare to enable part-time work or education)
- Education Credits (if you or your spouse are taking college courses)
- 529 Plan Tax Benefits (in some states)
Even as a SAHM, being the full-time caregiver often means you’re helping gather documents, organizing receipts, and tracking these benefits.
Record Keeping:
Keep thorough records of all income, expenses, and relevant documents for potential audits or inquiries.
Read: Stay-at-home mom guide on filing taxes
It’s crucial to remember that tax laws can change and individual circumstances vary. Seeking the advice of a qualified tax professional or using reputable tax software is highly recommended to ensure that all applicable tax credits and deductions are considered while staying compliant with tax regulations.
