I have a college student who comes in once a week for 3-4hours I give her a check for $40- once a week. I do not pay any social security or other taxes on her. She cleans my house I work outside of home but also work at home one day a week when she comes in to clean it.
I was wondering if this was a deduction on my taxes if I itemize them?
2007-12-20 03:33:02 · 7 answers · asked by Elizabeth M 2 in Business & Finance ➔ Taxes ➔ United States
You can only take a deduction for this cleaning on a prorated bases related to the business use of your home. Generally that would subject you to a number of issues which would not make that a wise decision unless you are already claiming a business use of your home.
In addition you have employee tax issues. The following publication will guide you in that regard. From what you have described you should be withholding employees taxes and paying your share in addition.
If you did not pay those taxes you would be joining the millions that do not. However about the time she reports you you could be subject to fines and penalty that would far exceed the tax.
http://www.irs.gov/pub/irs-pdf/p926.pdf
2007-12-20 04:09:25 · answer #1 · answered by ? 6 · 0⤊ 0⤋
No, you cannot deduct the cost of someone that cleans your house. Plus- at $40 a week, you probably actually should be paying additional taxes to cover the social security for her (when you pass $1600 in a year, it becomes legally required). So not only can you not deduct this, but it sounds like you should actually be paying more because of it.
2007-12-20 03:41:06 · answer #2 · answered by bmwdriver11 7 · 2⤊ 1⤋
Your housekeeper is a household employee and you owe "Nanny Tax". Social Security and Medicare taxes because she earns more than $1,500 per year if she worked all year. The tax should be reported on Form 1040 Schedule H as in Household.
2007-12-20 06:32:04 · answer #3 · answered by Anonymous · 0⤊ 0⤋
This is only deductible if you claim a deduction for home office expense, and then only on a pro rata basis. The pro rata basis is the % of the size of your home office to your total home size. If you can do that you can claim a pro rata deduction for all home expenses. The only other thought is if this person is providing care for a dependant child. Otherwise, there is no deduction available, or at least anything legitimate that I can think of
2007-12-20 03:38:13 · answer #4 · answered by jwishz 7 · 2⤊ 0⤋
As mentioned above, domestic workers are employees for which you must issue a W2, withhold Fica taxes, and depending on your state rules cover for unemployment and workers compensation. The household employee must also be legally able to work in this country.
Wages paid for household employees are not deductible.
2007-12-20 06:30:52 · answer #5 · answered by taxreff 7 · 0⤊ 0⤋
Not if it's your home. But you are required to fill out and send a 1099 to your house keeper and the IRS
2007-12-20 03:41:23 · answer #6 · answered by Jan Luv 7 · 1⤊ 0⤋
You should go to www.irs.gov for the answer to this.
2007-12-20 03:42:36 · answer #7 · answered by judithia 5 · 0⤊ 0⤋