OzNY
Level 3
‎09-14-2022 12:13 PM

I understand that the rule in NYS is to pay your nanny with a W2.  I guess the taxpayer would have to get an EIN# and put the nanny's wages and payroll taxes on the Schedule C.  It just seems funny to me to have only that expense.  I would think the IRS would question it, even though it's legitimate.  Is there another way to deduct the W2 wages for the employer.  This couples combine W2's are between 6-7 figures.  They don't quality for any credit or deduction because of their income. Suggestions PLEASE!!!

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Just-Lisa-Now-
Level 15
Level 15
‎09-14-2022 12:41 PM
It wouldnt go on Sch C, they're not self employed and nanny wages arent a deduction.

Theres child care credit for what they pay the nanny, but sounds like they dont qualify for that.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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sjrcpa
Level 15
‎09-14-2022 12:50 PM

The nanny's wages and payroll taxes go on Schedule H. Yes they need a Household Employer EIN and to issue a W-2. Plus state workmans comp and unemployment, etc.

There is no deduction for a nanny's wages. It is a personal expense. the only potential tax savings is the dependent care credit, but you noted they make too much money in 2021.


The more I know the more I don’t know.
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OzNY
Level 3
‎09-14-2022 01:49 PM

Thank you...I assumed the Schedule H, but I think it's been 10 years since I used one.  I was also aware of the insurances.  Thank you for easing my mind.  I needed the correct direction

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