She's a household employee. You must withhold Social Security and Medicare taxes from her wages AND pay the 7.65% employer share. You may withhold income tax if you both agree though it is not necessary. You add those taxes to your tax return and pay it when you file. If you haven't been making estimated payments for these, watch out for the possibility of penalties and interest for underpayment when you file.
You must file Schedule H with your Form 1040 tax return. Here's a link: http://www.irs.gov/pub/irs-pdf/f1040sh.pdf and here's a link to the instructions: http://www.irs.gov/pub/irs-pdf/i1040sh.pdf
There is no "deduction" that you can claim for a housekeeper, if that's what you're asking. Those are personal expenses and are not deductible.
Addendum: Sorry, but under the law she is NOT an IC! You MUST pay the Social Security taxes on her wages since she is working in your home. You CAN opt to not deduct her share if you wish but if you do you must add an amount equal to her share to her gross wages.
2007-12-19 14:24:07
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answer #1
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answered by Bostonian In MO 7
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If this is your housekeeper who follows your orders you will deal with her tax stuff sooner or later.
I have a canned explanation about apparently clueless independent contractors and their employers.
Some employers try to get around paying employment taxes (social security and unemployment) and other employee benefits like workers compensation insurance by improperly classifying employees as independent contractors. Some employees try to avoid taxes by getting paid under the table but when the time comes to collect Social Security, they suddenly remember their old employer did not comply with the Nanny Tax laws. The basic issue is the amount of control the employer has over the worker. If the worker is required to show up for work--personally--at a particular time, punch the clock, use the employer’s equipment and is paid an hourly rate, or another set rate based on time served, he is an employee. If either side doesn't understand the difference, I would be even more convinced that the worker is an employee. What is the preference, Slotted or Phillips? Complete an IRS Form SS-8 to get an official ruling on the worker's status. When the worker files his income tax return, he can attach a new form, IRS Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employee's half of social security but will still have to cough up all the income tax. IRS and the states are stepping up enforcement in this abuse area.
2007-12-19 16:29:26
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answer #2
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answered by Anonymous
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You employ the housekeeper. You must pay her Social Security and Medicare taxes on Schedule H when you file your taxes. The discussion of Schedule H in a previous answer is good.
But I would want to know why you have the housekeeper. Are you or a member of your household disabled and require the services the housekeeper provides, like light cleaning and preparing meals? This may be a deductible medical expense. Or, does the housekeeper watch a disabled child or dependent so you or your spouse can work? This may qualify for a Dependent Care Credit.
So, discuss with a local tax preparer to see if any of your housekeeping expenses may be deductible or qualify for a credit, as well as to properly fill out the payroll tax form Schedule H.
2007-12-20 01:42:33
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answer #3
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answered by ninasgramma 7
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The only way you could deduct a housekeeper, that I can think of, is if you work from home and your housekeeper also cleans up your work area. That would be listed as a business expense.
Is this a housekeeper or a cleaning service? A housekeeper works for you, and mainly you, everyday. A cleaning service has a long list of clients and visits each one usually the same day each week. If this is somebody you hire to come into your home and clean once a week, then what you are doing is probably okay, to hire as an independant contractor. You will not have to withhold taxes.
2007-12-19 15:07:20
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answer #4
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answered by j-man 4
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Housekeeping is NOT a deductible expense.
2007-12-19 14:23:20
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answer #5
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answered by Gem 7
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I have had back surgery and cannot push a vaccum or swing a mop, can I deduct the cost of a cleaning person to perform these chores for me?
2015-08-18 10:08:17
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answer #6
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answered by ? 1
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you can only claim her if she lives there but is not paid by you and has no other income. if she is paid by you, you will need to PAY the government taxes on her
2007-12-19 14:24:42
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answer #7
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answered by busymomkaren 5
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If you're paying her cash, then no you can't claim her.
If everything is done proper, taxes withheld, workman's comp, unemployment paid,etc.......Then yes you can claim what you pay her on your taxes.
2007-12-19 14:18:36
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answer #8
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answered by headcheese 5
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Do you pay with a check or cash.
2007-12-19 14:16:51
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answer #9
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answered by Hindu 2
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