Like a nanny, the IRS considers babysitters household employees if you exceed the annual income threshold for the year. Your employer will need to withhold taxes on your behalf unless you're under the age of 18 or meet other exceptions to this rule, such as working for an agency. If you...
It also discusses some of the employment tax rules for household employers. 504 Divorced or Separated Individuals Publication 504 explains tax rules that apply when couples divorce or separate. It covers general filing information and dependents issues, as well as payments and property transfers that ...
6. Report Payments of $2,800 or More Made to Household Employees While you don't have to report most cash payments to the IRS, the rules are different for some domestic workers, including nannies. If a person works exclusively for you and you dictate how they spend...
Tax alert for household employersReports on the tax responsibilities of household employers paying workers more than $50 in a calendar quarter. Payroll tax rules; Tax requirements; Differences between independent contractors and employees, fe...
Married couples can exclude up to $500,000 from their gain from their income from the sale of their home, for single taxpayers the maximum exclusion is $250,000. Ownership and occupancy rules apply. Energy Saving Credits. You can claim a credit for up to 30% of the cost of buying and...
(See exception for employees ages 60-63 below.) The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans and the federal government’s Thrift Savings Plan remains $7,500 for 2025. (Therefore, ...
If you own a home, you're eligible for several special tax breaks. But many of these rules changed over the past few years, especially after the Tax Cuts and Jobs Act was signed in December 2017. Here are some of the key tax benefits of owning a home, and how homeowners can make th...
Form 941.This form is used to report withheld income and FICA taxes for employees who aren't farm workers or household employees. It’s generally due the last day of the month that follows the end of each quarter. But if you deposited all withheld taxes for the quarter on or bef...
FICA and FUTA taxes are reported on Schedule H, Household Employment Taxes. Schedule H is used to report Social Security and Medicare taxes, federal income taxes withheld, and FUTA taxes for household employees. The liability for household employment taxes is then reported as Other Taxes on the ...
Be sure to check with your state's tax agency for specific rules in your area. You can potentially deduct state and local taxes up to a limit of $10,000. 4. Vehicle use Do you regularly drive to meet clients or suppliers? If so, you can take advantage of the tax deductions for...