If you plan on paying a household employee, such as a nanny, at least $1,900 during 2015, then you’ll need to pay Uncle Sam a share as well in the form of payroll taxes. These payroll taxes are commonly referred to as the “nanny tax.”
For some reason, the term nanny tax instills fear in many taxpayers. They assume that nanny taxes are a HUGE HASSLE and a HUGE EXPENSE, prompting some to pay their nannies illegally under the table or to opt against hiring a nanny at all.
But you have nothing to fear, because we have some fantastic news—you may be surprised to learn that with the help of a couple of extremely beneficial tax breaks, you can offset a large portion of the nanny tax, and in some cases you can actually come out on top! It’s unexpected, but sometimes paying taxes isn’t so bad, and this is definitely one of those times.
This article shows you how these generous tax breaks can take the pain out of the nanny tax and possibly put more money in your pocket in the end! ... Log in to view full article.