The American Rescue Plan Act substantially enhanced the Child and Dependent Care Tax Credit renewing interest in this savings on childcare expenses. Wages paid to a nanny qualify for the credit. Here is everything a family with a nanny or other childcare needs to know about claiming this tax credit on their personal tax return.
Hiring a nanny will be one of the most important decisions you’ll make as a parent. Even though you may not have a lot of time to put into the hiring process, don’t overlook these 7 tasks that could get skipped.
If your nanny drives their car while on the job, it’s a best practice to reimburse them for gas and mileage. Here’s how to do it the right way and avoid any additional taxes for extra compensation.
Summer is a popular time for minimum wage rate increases that apply to nannies and other household employees. It’s important to check the rate you’re paying a household worker to make sure it is not a wage violation. Rates are on the rise in several states and cities across the country.
As with any other household employment, taxes in a nanny share arrangement will be owed by the families and the caregiver. We’ll answer 5 key questions to give you everything you need to know about how to pay taxes when forming a nanny share.
For a few reasons, like qualifying for a health insurance subsidy or taking home more money, a nanny may want to be paid half on and half off the books. This may seem like a reasonable compromise especially if you like the caregiver. Plus, you save on taxes too. Everyone is happy. Right? Here are four key reasons why this is a bad idea even if well-intentioned.