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Level 1
June 5, 2019
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I paid my babysitter less than $2000 in 2017. Does that mean I do not have to give her a W-2?

  • June 5, 2019
  • 2 replies
  • 31 views

I paid our babysitter less than $2000 cash in 2017. Does that mean I do not have to submit a W-2? 

Do I have to pay any taxes on what I paid her? Again, it was less than $2000.

Best answer by Hal_Al

Yes. If you pay a "household employee", such as a baby sitter, less than $2000, you are exempt from the "nanny tax". You do not have to pay any tax or file schedule H.

The baby sitter is also exempt from FICA (social security and medicare) tax, but not income tax. 

2 replies

Hal_Al
Level 15
Hal_AlLevel 15Answer
Level 15
June 5, 2019

Yes. If you pay a "household employee", such as a baby sitter, less than $2000, you are exempt from the "nanny tax". You do not have to pay any tax or file schedule H.

The baby sitter is also exempt from FICA (social security and medicare) tax, but not income tax. 

June 5, 2019

No, you will not be required to issue your babysitter a W-2.

You must provide a Form W-2 if one of these is true:

  • You paid the employee at least $2,000 in 2017.
  • You paid the employee wages of any amount, and you withheld federal tax.

If you meet one of those rules, you must issue a W2 regardless of the age of the babysitter.

Level 2
June 5, 2019
With this situation, if we dont give a w2, can we still claim the<2000.00 as childcare expenses for our taxes?