Please help me understand State and Fed taxes for a stay-at-home nanny
January 25, 2012 12:23 PM Subscribe
It looks like we should file taxes on/for our in-home nanny, but we're not sure where to start learning about all we need to know. We're in California, and our nanny started in January, 2012. More details inside.
According to the 2011 Schedule H instructions
, because we'll be paying our nanny more than "$1,700 or more of cash wages," we'll need to files a Form W-2. We pay our nanny $9 per hour, usually for 9 hours per day, and 4 to 5 days per week. He started mid-January, and will work until the end of the school year, when my wife will be home.
From this other AskMe
, it looks like I could be using a FSA and saving some money, but this is all
new territory to me. Up to now, our household has only been myself and my wife, and she has done our taxes through TurboTax or something similar. Now we have a son, and his nanny, and I'd like to know more about federal and state taxes in general, and our options for taxes with our nanny specifically. Thanks!