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Dependent Care W/ Nanny

tilsonctilsonc member
in Babies: 9 - 12 Months
Does anyone use one to pay your nanny? The nanny wants to be paid under the table. The form just requires a signature for me to be reimbursed through work (no SS # or anything). Does anyone do this?
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Re: Dependent Care W/ Nanny

  • cedentoncedenton member

    You can't do it under the table and get reimbursed. Well, you can get reimbursed, but it will all come out at the end of the year when tax time comes around. You have to prove then that you paid it to a real person, therefore, she'd be owing a whole bunch of taxes and whatnot. If you want to get your $ back you need to withhold the right amount and pay them quarterly along with your own employer taxes. If you to pay her under the table, then don't put $ in the dependent care account.

    This is coming from someone who had a nanny Nov. - Feb (she decided to go home and we decided to go back to DC).

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  • dunlapbriggsdunlapbriggs member
    Even if the form now doesn't require any ss#, when you file your taxes for 2013 you will need to provide a legit name, address, tax id/ss# for daycare expenses paid to make it all "legit" with the government. If you don't claim the expenses, but took pretax money for dependent care, that is likely to send a big red flag to the IRS. If it was me, I would kindly tell my nanny that I would provide her with a 1099 at year end and suggest she make quarterly tax payments.  
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  • cedentoncedenton member

    imagedunlapbriggs:
    Even if the form now doesn't require any ss#, when you file your taxes for 2013 you will need to provide a legit name, address, tax id/ss# for daycare expenses paid to make it all "legit" with the government. If you don't claim the expenses, but took pretax money for dependent care, that is likely to send a big red flag to the IRS. If it was me, I would kindly tell my nanny that I would provide her with a 1099 at year end and suggest she make quarterly tax payments.  

    As an employer you need to be making quarterly tax payments, too, though. You have to pay your share of SS, unemployment, etc. to both the state and federal governments.

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  • dunlapbriggsdunlapbriggs member
    imagecedenton:

    imagedunlapbriggs:
    Even if the form now doesn't require any ss#, when you file your taxes for 2013 you will need to provide a legit name, address, tax id/ss# for daycare expenses paid to make it all "legit" with the government. If you don't claim the expenses, but took pretax money for dependent care, that is likely to send a big red flag to the IRS. If it was me, I would kindly tell my nanny that I would provide her with a 1099 at year end and suggest she make quarterly tax payments.  

    As an employer you need to be making quarterly tax payments, too, though. You have to pay your share of SS, unemployment, etc. to both the state and federal governments.


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