What do i need to do inorder to file taxes if im a nanny?

Question

I work for 2 families and they dont know what they need to give me inorder for me to file and i dont know what i need to do. It would be my first time filing. Any help would be greatly appreciated.

Answer 1

Technically your employer (who ever it may be) may opt to withhold taxes. It's up to them to decide what type of employee you are. If it's temporary, then your employers should issue you with a form called 1099-MISC and file it along with a form 1096 to the IRS. (You would get the recipient copy of the 1099-MISC) That form was due in February so if they file, it will be considered late and they will be subject to penalties. If they didn't furnish you with anything, you can still report your income on Schedule C. You can download that form along with instructions from the IRS website. Schedule C is used for self-employed individuals, contractors and consultants. You would attach this form to your form 1040.

Answer 2

If either of your families paid you $1,500 or more in 2006 to work in their home, they owe the employer share of SS, Medicare, and FUTA. If they paid you in cash and didn't forward your share of SS and Medicare, they will owe the entire amount (15.3%). They should file Schedule H on their tax returns and pay those taxes.

They should also get an Employer ID Number (EIN) and issue you a W-2. Once you get the W-2 from them, you can file your return.

So, tell them you need a W-2.

If you don't think you can do that, then just file your cash wages for 2006 using a Schedule C. Tell them that next year you will need a W-2. That way, they will not be subject to fines and penalties.