Filing jointly with my wife. I am self-employed but she worked as an au pair and needs to fill out a 1040 form. can I file her income not as self-employed? And how?

[Opus 17 · Accepted solution]

If she was a household employee then her employer is supposed to give her a W-2.  If she is an independent contractor, then she needs a schedule C in her own name to report her income and deduct any expenses.

If she believes she was an employee but is being treated like a contractor (and being cheated out of half her FICA) you can create a "substitute W-2" form and fill out form SS-8 to ask the IRS to investigate and determine if she is a contractor or employee, but this will probably screw up her job with the family she cares for.  She may want to talk it out with them first and see if she can get them to file a W-2.

Also, is she really an au pair, or more like a nanny or babysitter?  If she provides care in their home, she is probably their employee but wouldn't really be called an au pair unless she lives in the home and receives room and board.

https://www.irs.gov/individuals/international-taxpayers/au-pairs

https://www.irs.gov/taxtopics/tc756