Hiring a Nanny Legally: Tax Breaks for Nanny Employers

When it comes to childcare, the household employer tax may seem too expensive for many families. Since the IRS considers nannies as “household employees”, hiring a nanny does bring on significant tax liability.

However, before you decide against hiring a nanny, you should know about what vital tax breaks that can, in some cases, counter the initial tax liability. In some cases, this can make hiring a nanny virtually tax-free, and you may end up earning much more tax credit than nanny tax liability!

Riveter Consulting Group, one of the most seasoned recruitment agencies in Los Angeles, California, lists down 2 ways that you can receive tax breaks when paying nanny salaries:

1. Create a Flexible Savings Account (FSA)

Also known as a Dependent Care Account, this fund can be organized with the company that employs you, granted that they participate in the program. Through an FSA, you can set aside up to $5,000 of your earnings before taxes for the purpose of covering family- and dependent-related costs. Pre-tax means that this amount can’t be touched by Medicare, Social Security, Federal, or State withholdings. For home employers paying a nanny to watch over their children, this can result in as much as $2,300 of a tax credit!

2. Child or Dependent Care Tax Credit

Unfortunately, not all companies offer the FSA tax advantage. In this case, know that the IRS does grant an alternative tax credit known as the Child or Dependent Care Tax Credit. You can claim this on your personal income tax return by completing the 2441 IRS Form. This option provides you with a 20% tax credit on childcare expenses (i.e. nannies) of up to $3,000 per dependent. For families with more than one dependent, the expense limit doubles.

As your trusted staffing agency in California, we want you to be aware of your options. The above-mentioned options are available to home employers who hire nannies for the purpose of child care. To qualify, families must be able to provide that the nanny salary is truly a work-related expense.

  • mobile massage NYC
    Posted at 10:10h, 20 February Reply

    I cannot consider anything we get side tracked about in our lives makes a difference.

    At all times invested in taking into consideration the assorted things that people experience each and every day is
    just undoubtedly necessary, as no other person will encounter existence
    for us. I feel that men and women should be a whole lot more mentally stable.
    Knowledge is excellent, yet so much of anything you think about is indeed abstract.

    Having a cup of coffee is a zen process that brings one back to
    the present moment in time. We must become more in the here and now, without being confused by life and the episodes we confront every day. https://business69.com/practical-strategies-for-digital-nomads-travelers-and-everybody-else-259-html

  • best cbd
    Posted at 03:28h, 15 March Reply

    Wow, this article is pleasant, my younger sister is analyzing
    these kinds of things, thus I am going to inform

  • cla safflower oil weight loss
    Posted at 13:42h, 19 April Reply

    Hello, I wish for to subscribe for this website to take latest updates, thus where can i
    do it please help.

    • Belle
      Posted at 20:06h, 19 April Reply

      Hello, You can follow either our Facebook or Instagram page to see updates on our blog posts. Thank you for feedback.

  • keto advanced weight loss
    Posted at 12:05h, 25 April Reply

    Aw, this was a very nice post. Taking a few minutes and
    actual effort to generate a really good article… but what can I say… I procrastinate a lot
    and never seem to get anything done.

  • keto genix canada reviews
    Posted at 13:00h, 28 April Reply

    hello!,I love your writing very much! percentage we keep up a
    correspondence more about your article on AOL? I require a specialist in this area to resolve my problem.
    Maybe that’s you! Taking a look forward to peer you.

  • Click here
    Posted at 17:38h, 29 April Reply

    I was recommended this blog by my cousin. I’m not sure whether
    this post is written by him as no one else know such detailed about my difficulty.
    You’re wonderful! Thanks!

  • Keto
    Posted at 05:01h, 30 April Reply

    Wow, amazing blog layout! How long have you been blogging for?

    you make blogging look easy. The overall look of your site is great,
    let alone the content!

  • http://lyricsandvoicez.com/blogs/post/89463
    Posted at 17:37h, 02 May Reply

    Hi there everyone, it’s my first visit at this website, and post
    is really fruitful designed for me, keep up
    posting such articles or reviews.

  • Mole Removal Cream
    Posted at 08:02h, 04 May Reply

    When someone writes an article he/she retains the plan of a
    user in his/her brain that how a user can be aware of it. Therefore that’s why this piece of writing is perfect.

  • Brooklyn
    Posted at 13:21h, 05 May Reply

    I was able to find good information from your articles.

  • Barbara
    Posted at 14:59h, 05 May Reply

    You actually make it seem so easy with your presentation but I find this matter to be really something that I think I would never understand.
    It seems too complex and extremely broad for me.
    I’m looking forward for your next post, I’ll try to get the hang of it!

  • Alisha
    Posted at 14:42h, 15 May Reply

    I like it when folks get together and share views. Great
    blog, keep it up!

  • Keto
    Posted at 12:43h, 16 May Reply

    Hi colleagues, its great post concerning tutoringand entirely defined, keep it up all
    the time.

  • Gabriel
    Posted at 17:54h, 16 May Reply

    Hi to all, how is the whole thing, I think every one is getting more
    from this web site, and your views are pleasant for new people.

  • Keto Advanced Fat Burner Ingredients
    Posted at 07:43h, 18 May Reply

    I’m not that much of a internet reader to be honest but your sites really nice,
    keep it up! I’ll go ahead and bookmark your site to come back in the future.

  • Brooklyn
    Posted at 12:53h, 18 May Reply

    Good article. I am experiencing some of these issues as well..

  • Victor
    Posted at 13:06h, 18 May Reply

    Aw, this was an incredibly good post. Finding
    the time and actual effort to make a superb article… but what
    can I say… I put things off a lot and don’t seem to get anything done.

  • Autumnsmit
    Posted at 17:34h, 19 May Reply

    Hi there, I enjoy reading through your article.
    I wanted to write a little comment to support you.

  • Zack
    Posted at 14:19h, 22 May Reply

    Way cool! Some very valid points! I appreciate you writing this write-up and the rest of
    the site is very good.

  • Stanley
    Posted at 04:50h, 28 May Reply

    Hey would you mind stating which blog platform you’re working with?
    I’m going to start my own blog soon but I’m having a hard time making a decision between BlogEngine/Wordpress/B2evolution and Drupal.
    The reason I ask is because your design and
    style seems different then most blogs and I’m looking for
    something completely unique. P.S Apologies for
    being off-topic but I had to ask!

  • Rory
    Posted at 17:39h, 28 May Reply

    Thanks for sharing your thoughts on Aria. Regards

  • Zariah
    Posted at 12:03h, 30 May Reply

    Do you mind if I quote a couple of your articles as
    long as I provide credit and sources back to
    your website? My blog is in the exact same area of interest as
    yours and my users would certainly benefit from a lot of the
    information you present here. Please let me know if
    this alright with you. Regards!

    • Belle
      Posted at 16:07h, 01 June Reply

      Please notify us of your blog ID. Thank you!!

  • Ronald
    Posted at 16:43h, 31 May Reply

    Hello there, I discovered your web site via Google whilst looking for
    a related matter, your web site came up, it seems great. I’ve bookmarked it in my google bookmarks.

    Hi there, just was aware of your weblog thru Google,
    and located that it is truly informative. I am gonna watch out
    for brussels. I will be grateful when you proceed this in future.
    Lots of other folks will probably be benefited out of your writing.

  • Jacob
    Posted at 06:27h, 13 June Reply

    Wonderful blog! I found it while surfing around on Yahoo News.
    Do you have any tips on how to get listed in Yahoo
    News? I’ve been trying for a while but I never seem to get there!


  • Adelynn
    Posted at 13:01h, 13 June Reply

    Excellent article. I’m dealing with a few of these issues as well..

  • Adrian
    Posted at 13:33h, 13 June Reply

    I’d like to thank you for the efforts you’ve put in penning this
    blog. I’m hoping to see the same high-grade content by you in the future as well.
    In fact, your creative writing abilities has motivated me to
    get my own, personal website now 😉

  • Lucienne
    Posted at 18:11h, 26 June Reply

    Hello there I am so delighted I found your blog page, I really found you by error, while I was browsing on Digg for something else, Anyhow I am here
    now and would just like to say thanks a lot for a remarkable post and a all round interesting blog (I also love the theme/design),
    I don’t have time to browse it all at the minute but I have bookmarked it and also added in your RSS feeds,
    so when I have time I will be back to read much more, Please do keep
    up the excellent jo.

  • homepage
    Posted at 11:57h, 27 June Reply

    Great web site you have got here.. It’s difficult
    to find high-quality writing like yours nowadays.
    I truly appreciate people like you! Take care!!

  • Skincell Pro Price
    Posted at 14:05h, 29 June Reply

    What’s up friends, how is all, and what you would like to say on the
    topic of this article, in my view its in fact amazing for

  • side effects of Alpha Femme Keto Genix
    Posted at 07:21h, 30 June Reply

    Its like you read my mind! You seem to know a
    lot about this, like you wrote the book in it or something.
    I think that you could do with a few pics to drive the message
    home a bit, but other than that, this is magnificent blog.

    A fantastic read. I’ll certainly be back.

  • Exogenous Ketones Review
    Posted at 04:43h, 04 July Reply

    Currently it appears like Movable Type is the best blogging platform out there right
    now. (from what I’ve read) Is that what you are using on your blog?

  • Aliana
    Posted at 05:11h, 04 July Reply

    Fantastic goods from you, man. I’ve take note your stuff previous
    to and you’re just extremely fantastic. I really like what you have got right here, certainly
    like what you are saying and the best way by which you assert it.
    You make it entertaining and you still take care of to stay it sensible.
    I cant wait to learn far more from you. This is actually
    a tremendous website.

  • Skin Cell Reviews
    Posted at 05:30h, 04 July Reply

    Hi there colleagues, good paragraph and fastidious
    arguments commented at this place, I am in fact enjoying by

  • Ezekiel
    Posted at 06:16h, 05 July Reply

    Good post. I learn something totally new and challenging on sites I
    stumbleupon every day. It’s always helpful to read content from
    other writers and practice something from other websites.

  • skin cell Pro
    Posted at 05:34h, 10 July Reply

    Do you mind if I quote a few of your articles as long as I provide credit and sources back to
    your website? My blog site is in the very same area of interest as yours and my visitors would
    truly benefit from some of the information you present here.
    Please let me know if this okay with you. Appreciate it!

    • Belle
      Posted at 20:09h, 10 July Reply

      Thank you. We are happy that you enjoy this site. We would love you to share.

Post A Comment