April 30, 2012
Considering a summer nanny? If so, you may be pleasantly surprised at the tax consequences. Most families with summer nannies (or any temporary or part-time caregiver) find that their tax breaks are greater than their tax costs -- so they actually come out ahead financially by putting their caregiver on the books. For an estimate of your costs and tax breaks, visit our free Nanny Tax Calculator.
April 9, 2012
If you and another family employ a nanny in a NannyShare or CareShare situation, the state and federal tax agencies consider each family to be a separate employer.
That means each family has separate "nanny tax" obligations on their portion of the wages. But, it also means each family is entitled to tax breaks on their portion of the wages. Many families are pleasantly surprised to learn that their savings from the childcare tax breaks are greater than their employer taxes -- this is especially true in NannyShare, part-time and summer nanny situations.
To calculate your savings, enter your portion of the nanny's wages into our free Employer Budget Calculator.