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

[patric]

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.

[Hal_Al · Accepted solution]

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. 

[AnthonyJ]

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.

[thebcmillers]

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

[Hal_Al]

Yes. But, you will have to provide the childcare provider's SS# to claim the dependent care credit

[thebcmillers]

Thanks!

[xmasbaby0]

And make sure your babysitter knows you are claiming the childcare credit.  She has to report her income from babysitting.  The iRS matches up what you claim you paid and what she reports on her own tax return.

[SweetieJean]

Babysitter has to report it in any case.

[xmasbaby0]

Of course....but many people are unaware of that.  Don't want the babysitter to have a problem later.

[TaxGuyBill]

It makes everything MUCH easier if you just give her an W-2.  It is easy to file.

[fanfare]

Except for the fact that the deadline for supplying a 2017 W-2 is long past.

[thebcmillers]

Asking for 18, just found this conversation helpful and applicable.

[macuser_22]

You might want to review IRS pub 926 "Household Employer's Tax Guide"
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p926.pdf">https://www.irs.gov/pub/irs-pdf/p926.pdf</a>