@Critter-3 wrote:
On the 2441 you DO add the employer portion of the FICA taxes to the amount paid for child care as reported on the Sch H ... so for every $100 you pay you get to use $107.65 on the day care credit.
Yes, I was wrong about that and have corrected it above.
However, remember that the maximum qualifying nanny expense for the credit is either $3000 or $6000. If you pay your nanny more than that, there are no tax breaks or deductions for the nanny tax. You must figure that your actual cost will be 7.65% higher than the gross wage you offer to the nanny.
