Nanny Tax

[Questionguy101]

I understand that the employer is not required to issue a Form W-2 to a household worker (nanny) if the employer pays less than $1,800 in 2012 and less than $1,000 in any one of the quarters.

So in the case that a Form W-2 is not required to be issued, how does the nanny report her tax?

[Jiggers]

See the 1040 instructions for line 7. No W-2 because the wages are less than the filing requirement: enter the amount on line 7 with HSH on the dotted line next to line 7.

[Questionguy101]

See the 1040 instructions for line 7. No W-2 because the wages are less than the filing requirement: enter the amount on line 7 with HSH on the dotted line next to line 7.

Thank you.

[Questionguy101]

See the 1040 instructions for line 7. No W-2 because the wages are less than the filing requirement: enter the amount on line 7 with HSH on the dotted line next to line 7.

Hi Jiggers, one question came to my mind. If the HOH income is reported on line 7, I take it to mean that the nanny does not have to pay social security tax on it. And the employer is not required to pay it either since the total pay is under $1,800. So who would pay the social security tax? Or they just waive it because the amount is small?

[Jiggers]

Hi Jiggers, one question came to my mind. If the HOH income is reported on line 7, I take it to mean that the nanny does not have to pay social security tax on it. And the employer is not required to pay it either since the total pay is under $1,800. So who would pay the social security tax? Or they just waive it because the amount is small?

I have no clue. Ask Congress?

[Kram BergGold]

Two points

First only the $1800 is relevant. There is no provision about less than $1,000 per qtr regarding W-2 filing. Second, there is no SS or Medicare TAx due in the situation where the pay is under
$1800.