Nanny tax question

Karenin

For anyone who uses a nanny: do you have to send in the tax payments quarterly, or can you just enter all of the info into your tax return forms and have the taxes essentially deducted from what would otherwise be your refund? 

ChrissyD1203

I use intuit and it makes me make quarterly payments.  

krrpe99

I believe you have to do quarterly payments. 

SuperherosMom

If they only work for you you will file a W2 for Them at year end. You will need to get an EIN from the IRS. You will be responsible for paying the payroll and withholding taxes on your 1040 at year end (schedule H for household employee). Depends on your state if you file anything with your state. I'm in TX and household employees wages are reported for state workers comp. If you pay quarterly it will be quarterly estimated tax payments for you personally (1040-ES) since the payroll taxes are due with your personal return. (I'm a CPA/13 yrs.)

Karenin

Ok awesome, so SuperherosMom federally speaking I'm ok to pay at year's end? Last year we gave her a w2, we gave all the accurate information on our return (using turbo tax), so it took the FUTA and the 7.65% withholding as well as our 7.65% out of what would have been our return. We file married but withhold at the higher single rate so this means we did not owe money. Just making sure this was legal and did not need to change since it sounds like a headache and we like keeping our monthly expenses lower.