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Hi, Mark Kohler here with another tax and legal tip lets talk about the household employee and nanny tax now Theyre one and the same, and if you have someone working in your home For more than $2,000 a year which is an average of 166 dollars a month This tax may apply to you and the IRS is up in their games, so lets talk about it number one Lets find out if this person even is classified as a household employee now a nanny By default is a household employee. This could be your gardener your maid your Butler anybody Thats coming to your house and again working under your direction for more than $2,000 a year or 166 dollars a month now Theres three classifications. We need to worry about here to see if they fall under this tax the first one. Thats exempt lets give you the good news first if this person is a Spouse that your pain to help take care of your family members or your house Then obviously you dont have to withhold the tax if theyre a child of yours under age 21 Theyre
