Author Topic: Nanny Taxes  (Read 14363 times)

Cowspot28

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Nanny Taxes
« on: March 20, 2023, 12:27:38 PM »
Hello,

I'm trying to get some clarification re: taxes for nanny. Normally, I understand the employer (us) is required to pay taxes on behalf of nanny. Our situation is different in that our state provides a subsidy paid directly to childcare provider. The provider receives a 1099 from the state. Are we responsible for taxes in this case? If so, how much?None of our money is  going to nanny. Thanks!

MDM

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Re: Nanny Taxes
« Reply #1 on: March 20, 2023, 03:07:55 PM »
Pub. 926, Household Employer's Tax Guide may interest you.

In particular, does "If an agency provides the worker and controls what work is done and how it is done, the worker isn't your employee" apply?

Cowspot28

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Re: Nanny Taxes
« Reply #2 on: March 21, 2023, 11:16:37 AM »
Thanks for your reply and link. The problem is I found this person, decided wages and hours, etc so I think she would be considered an employee? Care takes place in my home, and she isn't a professional nanny with her own business. I feel like the state has characterized her as a contractor by giving her a 1099, but I'm just not sure I should have to be paying taxes since I'm not the one actually paying her.

MDM

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Re: Nanny Taxes
« Reply #3 on: March 21, 2023, 12:47:43 PM »
Seems an unusual situation: the state is paying the nanny directly, at a rate you and the nanny negotiated?

Your best bet may be to talk with the state organization that makes the payments.  With any luck they will have an answer more helpful than "consult your tax return preparer".

Or maybe someone experienced with this situation will chime in....