You would claim your expenses on Form 2441.
To enter your
childcare expenses follow the steps below.
- Click Deductions
& Credits.
- Continue to Deductions.
- Click on
I'll choose what I work on (if shown)
- Scroll down until you see Child and
Dependent Care Credit
- Click Start
Nanny tax
If you paid your
nanny $2,000 or more in 2018, you should withhold and pay Social
Security and Medicare on all of her wages. If you paid your nanny $1,000 or more in a quarter in 2018, you must pay
the federal unemployment tax, or FUTA. (You may also
owe state unemployment taxes.)
Generally, for 2018 an employer
needs to pay Social Security and Medicare taxes for “cash wages” of $2,000 or
more paid to any one employee. Cash wages refer to checks, money orders and the
like. They don’t include “the value of food, lodging, clothing, transit passes
and other noncash items you give your household employee.” But cash given to an
employee in place of those items counts as cash wage.
Who Needs To File Form W-2 and Form
W-3?
You must file Form W-2 for each household employee to whom you
paid $2,000 or more of cash wages in 2018 that are subject to social security
and Medicare taxes. To find out if the wages are subject to these taxes, see
the instructions for Schedule H, lines 1, 3, and 5. Even if the wages aren't
subject to these taxes, if you withheld federal income tax from the wages of
any household employee, you must file Form W-2 for that employee.
If you file one or more Forms W-2, you must also file Form W-3.
Do You Have an Employer
Identification Number (EIN)?
If you have household employees, you will need an EIN to file
Schedule H. If you don't have an EIN, see Form SS-4. Don't use a social
security number (SSN) in place of an EIN. The Instructions for Form SS-4
explain how you can get an EIN immediately over the internet, in 4 business
days by fax, or in about 4 weeks if you apply by mail. See How To Get Forms and Publications for
details on how to get forms and publications including Form SS-4. To get an EIN
over the internet, visit IRS.gov and enter “EIN” in the search box.
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