Nanny Tax and Schedule H

August 27, 2011 7:20 AM

Paying Nanny Tax by Schedule H of the 1040.

We're hiring a Nanny and I would like to do it legally with all taxes paid. I have the option of using a service like http://www.4nannytaxes.com/services/

For $500 per year they file the W-2 and federal and state taxes.

However, I think all I really need to do is
1. Get an EIN (i have to do that with nannytax services anyway)
2. File a W-2 for the nanny
3. File schedule H with my 1040 (not a big deal with turbotax).

If that is all there is to it, then I don't think it is worth $500. However, I don't want to get into quarterly filing and all kinds of messes that I did not anticipate.

Are the state taxes something i can do on my income tax return, or does that get complicated? (I'm in NM)

Has anyone done the Schedule H route? Do I understand this correctly?

posted by alcahofa to Work & Money (1 answer total)

Yeah, the Breedlove and other services are a rip off. Register an EIN and the rest is as you say - it is time consuming but better than paying them. However, at least in my state, we do have to do quarterly taxes. If you memail me your gmail accnt, I'll share you our paysheet that we use that does all of the tax calculation.
posted by k8t at 7:27 AM on August 27, 2011