This is kind of a trick question, because you have to report all income, I doubt anyone could live on any of these scenarios solely. However, if it were the only source of income #2 ($35 x 52) is less than the threshold and would not need to be taxed.
Thanks to all for participating! A bunch of smarties! Scenario #2 it is and Roxanne D is our winner! Roxanne, please contact Emily@viathevillage.com to confirm the best address to mail you your gift card.
We are trying to spread awareness of domestic employee rights. Taxes are usually a confusing topic for all. We would appreciate you all spreading the information. Please share: