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 Expert
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Location: ohio-in my own little world with pretty ponies :) | Ok so I'm a nanny. I just started working for them in August. This is their first time having a nanny. And this is my first time doing it also. They don't take taxes out of my paycheck. Do I have to pay taxes? They May or may not claim it. We've never done this and don't know the right way to go about it. Any advice would be appreciated. |
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  That's White "Man" to You
Posts: 5515
 
| They should and probably will give you a 1099 that will include all money paid to you. They will do this because it may be deductable to them. This means that you will have to claim that income and pay taxes on the taxable portion. I hope you have been keeping detailed records of your expenses so that you can lower your tax obligation. If you haven't been, start now. I would ask them what they plan to do. They should check with thier accountant. |
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 Leggs
Posts: 4680
Location: lexington KY | You should receive a 1099 from them and yes, you should have to pay taxes it is an income. |
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Expert
Posts: 2276
Location: ohio-in my own little world with pretty ponies :) | They have to claim it before I would get a 1099 right? What if they don't claim it? |
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 Baby Blue's
Posts: 7304
Location: Texas | They can ONLY claim $6,000 max (if only 1 child, it's $3,000). I have a nanny and I give her a 1099 for $6,000 even though I pay her way more than that... |
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 Expert
Posts: 1432
Location: Never in one place long | If they don't claim it and tell you that specifically, as long as they paid you cash I wouldn't worry about it. Just depends what they do. From here on out, you should start taking money out for taxes or have them? It can get messy if you don't. |
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 Expert
Posts: 1898
| From personal experience, don't always believe they aren't going to write off your services. This exact same scenario happened to me. I was young and didn't know any better. I was told it was all "under the table" and they weren't going to 1099 me. February I got a 1099, unannounced. When I asked about it they told me their CPA told them they needed more write offs and they were claiming the expense credit.
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Expert
Posts: 2276
Location: ohio-in my own little world with pretty ponies :) | I just talked to them about it and they are calling their accountant to find out what needs to be done. They never told
me it was under the table and I completely trust these people. But I understand the worry and warnings. And yes, something could still happen. I have been putting a little extra in an extra savings account for this reason knowing I may have to pay it back. |
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Expert
Posts: 2276
Location: ohio-in my own little world with pretty ponies :) | I have been keeping track of the amount I'mgetting
paid and so have they. |
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Baby Blue's
Posts: 7304
Location: Texas | lexyy12 - 2014-01-07 2:29 PM I just talked to them about it and they are calling their accountant to find out what needs to be done. They never told
me it was under the table and I completely trust these people. But I understand the worry and warnings. And yes, something could still happen. I have been putting a little extra in an extra savings account for this reason knowing I may have to pay it back.
Make sure you tell them to confirm with their CPA that it doesn't help them ONE PENNY to claim over $6,000 (assuming there are at least 2 kids). |
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Expert
Posts: 1488
| bocephus's mama - 2014-01-07 2:33 PM
lexyy12 - 2014-01-07 2:29 PM I just talked to them about it and they are calling their accountant to find out what needs to be done. They never told
me it was under the table and I completely trust these people. But I understand the worry and warnings. And yes, something could still happen. I have been putting a little extra in an extra savings account for this reason knowing I may have to pay it back.
Make sure you tell them to confirm with their CPA that it doesn't help them ONE PENNY to claim over $6,000 (assuming there are at least 2 kids).
Bo mama is correct
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Miracle in the Making
Posts: 4013
| I DISAGREE 1099 I CAN TAKE OFF MY TAXES TOTALLY IF I PAY SOMEONE 00.00 I CAN DEBUCT IT ALL
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Elite Veteran
Posts: 941
Location: Kansas | One of you needs to talk to a tax accountant. You are a household employee and they are required to pay social security and medicare tax on your earnings and provide you with a W-2. They might have the option to pay the tax with their tax return. You are not a "1099" contractor. You will owe tax (potentially) on all of your earnings. What they might take as a credit isn't relevant. If your total earnings for the year are low enough, you might not owe any taxes. It is good planning to save a portion of what you earn. If you don't need it for taxes, it will be available for emergencies or other expenses. |
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That's White "Man" to You
Posts: 5515
| As a qualifier to my above statement... I rarely agree with our accountants. Tax rules almost always seem to defy logic. And as with all advise, you usually get what you pay for! Good luck! |
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 The Vaccinator
Posts: 3810
Location: Slipping down the slope of old age. Boo hoo. | TigerTe - 2014-01-07 3:27 PM
One of you needs to talk to a tax accountant. You are a household employee and they are required to pay social security and medicare tax on your earnings and provide you with a W-2. They might have the option to pay the tax with their tax return. You are not a "1099" contractor. You will owe tax (potentially) on all of your earnings. What they might take as a credit isn't relevant. If your total earnings for the year are low enough, you might not owe any taxes. It is good planning to save a portion of what you earn. If you don't need it for taxes, it will be available for emergencies or other expenses.
THIS!!!!!!!!!!!!!!!!!!!!!!! |
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Expert
Posts: 2276
Location: ohio-in my own little world with pretty ponies :) | Bringing this thread back for another question.....how do I get a 1099 form? |
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Rad Dork
Posts: 5218
Location: Oklahoma | lexyy12 - 2014-01-27 5:24 PM Bringing this thread back for another question.....how do I get a 1099 form?
I *believe* they are the only ones who can prepare you a 1099 and in your case they will need your SSN to do it....so if they ever ask you for that (I believe they have until 1/31 to get them out, someone please correct me if I'm wrong!) you will know they are preparing you on.
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 Fact Checker
Posts: 16572
Location: Displaced Iowegian | lexyy12 - 2014-01-27 5:24 PM Bringing this thread back for another question.....how do I get a 1099 form?
You don't "get" one....Your employer has to give you one filled out with the amounts paid, etc. |
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 The One
Posts: 7997
Location: South Georgia | If you made more than $600 from them, they are responsible for providing you with a 1099 form. You will take it to your accountant when you have your return prepared. I hope you have been saving, because you will be responsible for a bunch of taxes on your income. Normally, people try to set aside about 25-30% of everything they get paid to pay for taxes. 1099's are a raw end of the deal.
IF they dont claim you and they do not give you a 1099 (which I highly doubt, because it is more financially inconvenient for them), and they paid you in all cash, then you dont have to report that income. |
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The One
Posts: 7997
Location: South Georgia | lexyy12 - 2014-01-07 3:31 PM I have been keeping track of the amount I'mgetting
paid and so have they.
Right, but if they DO give you a 1099, you need to have expenses to lower your taxable income. For example: a mileage log of how much you drove to and from work (or for any errands you ran), phone bills so you can claim part of that as an expense, etc. Any expenses you incurred due to the job will lower your taxable income. You will want as many deductions as possible, because paying taxes on a 1099 is no joke. |
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