When families begin considering in-home care—whether for a child or an aging loved one—questions about costs come up quickly. One of the most common: Are these expenses tax deductible? The answer is: sometimes, yes. But it depends on your situation and the type of care provided.
Topics: nanny, agency, senior, in-home care tax deduction, senior caregiver tax deduction, child and dependent care tax credit, nanny tax credit
Topics: agency, nanny agency FEIN, childcare agency tax ID, nanny agency invoice for taxes
Tax season can be stressful, especially if you end up owing more than expected. Many nannies and other household employees find themselves with a surprise tax bill, often because of how income tax withholding is handled throughout the year.
Topics: nanny share, nanny agency, nanny, nanny payroll, homework solutions, W-4 mistakes, nanny share taxes
Did you employ a nanny or other household worker in 2024 and pay them $2,700 or more in wages? If so, congratulations—you’re officially a household employer with tax filing obligations in the eyes of the IRS! That means you will need to report your employees’ wages and pay employment taxes when you file your federal income tax return.
Topics: agency, CPA, nanny taxes 2024, household employer tax forms
Babysitting is an essential service for parents who want to go on a date, attend a child-free event, or simply have some time to recharge. However, when tax season arrives, many caregivers wonder whether they need to pay taxes on those earnings. The answer depends on how much money changed hands and whether the temporary work meets the guidelines for self-employment.
Topics: household employee taxes, nanny, agency, nanny side jobs, babysitting taxes, babysitter self-employment tax
If you’ve hired a nanny, you’re responsible for handling their payroll and taxes correctly—and that includes issuing a W-2 at the end of the year. But a W-2 isn’t just a form you fill out in January; it’s the final step in a yearlong process of paying your nanny legally.
Topics: nanny w-2 form, nanny, agency, nanny tax withholding, How to create a W-2 for a nanny, Employer responsibilities for a nanny, Nanny tax forms
Surprisingly (or maybe not…), the Internal Revenue Code doesn’t provide a neat little list of exactly what can and can’t be deducted as a business expense. Instead, it gives us this broad guideline:
Topics: nanny taxes, household payroll, agency, CPA, business expense deductions, household employee tax rules, self-employed tax write-offs
Hiring the right professional nanny for your child is one of the most important decisions you’ll make as a parent. You want someone who is not only experienced and trustworthy but also a perfect fit for your family’s unique needs. The search process, however, can be overwhelming and time-consuming—especially when it comes to ensuring that every candidate is properly vetted and qualified.
Topics: nanny agency, hiring a nanny, Hire a nanny, Professional nanny agency
Feeling like there’s never enough time in the day? You’re not alone. Between work, family, and everything else on your plate, managing your household’s payroll and taxes can feel overwhelming. But here’s the good news: you don’t have to do it all yourself.
Topics: household employee taxes, caregiver payroll, nanny, nanny payroll, nanny background screening, agency, senior, outsource household payroll, stress-free payroll solutions
You’ve hired a fantastic nanny, housekeeper, or caregiver — but now it’s time to navigate pay stubs. It’s more than just a piece of paper. A pay stub is your proof of legal compliance, your employee’s proof of income, and one of the most important parts of managing household payroll.
Topics: nanny agency, nanny, homework solutions, Pay stubs for household employers, How to create pay a stub for nanny, pay stubs for caregivers, pay for household employees
