TSBAS Accounting Bookkeeping Payroll Tax Preparation
  • Home
  • Blog
  • Learn More
    • About >
      • Meet the Team
      • Reviews
    • Services >
      • Tax Debt Relief
      • Accounting & Bookkeeping
      • Tax Services
      • Payroll Services
      • Seminars & Training
      • QuickBooks Services
      • Specialized Services >
        • Spa Bookkeeping
        • Services for Real Estate Agents
  • Schedule
  • Contact Us
  • TSBAS Client Guide
  • Service Requests
    • Payroll Service Quote Request
  • Links to Important Things
  • careers
  • Home
  • Blog
  • Learn More
    • About >
      • Meet the Team
      • Reviews
    • Services >
      • Tax Debt Relief
      • Accounting & Bookkeeping
      • Tax Services
      • Payroll Services
      • Seminars & Training
      • QuickBooks Services
      • Specialized Services >
        • Spa Bookkeeping
        • Services for Real Estate Agents
  • Schedule
  • Contact Us
  • TSBAS Client Guide
  • Service Requests
    • Payroll Service Quote Request
  • Links to Important Things
  • careers

Nanny Taxes

1/29/2020

0 Comments

 
By now you most likely have seen tax documents starting to show up in your mailbox. It’s the time of year when they are unavoidable. Some look like good news, some look like bad news, but few come as surprises. Some people are surprised to find, though, that they themselves should have provided some tax forms to others.

This most often comes in the form of what is colloquially known as the “nanny tax.” It’s easy to see where the name comes from, since a nanny is someone a family provides a decent amount of money to over a year. The tax, however, covers anyone who could be seen as a household employee, be it a caregiver, housekeeper, etc.

The tax essentially comes down to the fact that if you paid a household employee more than $2,100 in the year, they owe 7.65% in Social Security and Medicare taxes on those wages. That seems like a decent chunk of money when you think of it on the whole. But this only breaks down to about $40 a week. That means it can even be reached by handing a babysitter some money after a weekly date with your spouse.

(Not that I’m going to tell you to go back and try to track down how much you paid the babysitter every week, but it is enlightening as to how easy this threshold could be to reach.)

Beyond what a household employee can personally owe, if you pay one of these employees more than $1,000 in any calendar quarter, you’re liable for paying federal and state unemployment taxes.

Granted, we aren’t talking about huge numbers here, but if this is something you were not aware of and you want to make sure that you are handling it correctly and legally going forward, contact us and we will work out a plan to make sure you have everything in order.
Keeping things in order is something to keep in mind all over the place when it comes to this time of year and those tax forms that you are starting to receive. The more you think now about getting stuff together, the less hectic the tax return process will feel.

A good starting point is knowing that whatever you needed to file last year’s return is going to be needed again. To move beyond that starting point, though, work by the mantra that you can never provide too much information.

If you come to your tax return appointment and bring some information, receipts, etc., that you aren’t sure if they’ll be applicable to your return or count as a deduction, the worst thing that can happen is you are told no. But it’s possible you find one or two that do count and then the little time it took to include that in your folder of forms will be worth it.

Then next year you’ll have an even better point at which to start from. Time is on your side for now, so get on these things and do not be afraid to make an early appointment to handle your return.

Warmly,

Josh Bousquet
Connect to Us ~ 
Facebook ~ Twitter

To ensure we don't make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

0 Comments



Leave a Reply.

    Archives

    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017

    RSS Feed

    Categories

    All
    Balance
    Bookkeeping
    Business
    Payroll
    Tax
    Tax Prep
    Tax Return
    Tax Scam

    View my profile on LinkedIn
Website by Odeh Media Group
Copyright ©2025 TSBAS.com, All Rights Reserved
The Small Business Accounting Solution, Inc
50 South 1st Avenue, Coatesville PA 19320
(844) 208-2937
Privacy Policy
​Contact Us
Terms & Conditions