Nanny tax (household employees)
$2,800+ threshold
Can You Write Off Nanny Tax?
Short answer: Paying a nanny or housekeeper $2,800 or more in 2025 (indexed for 2026) means withholding and paying Social Security and Medicare via Schedule H; it's not deductible.
The dependent care credit or FSA can offset part of nanny wages.
Records to keep: Keep the receipt, proof of payment, and a note or log showing business use; for mixed-use items, track the business percentage.
Nanny tax (household employees)
Typical range: $2,800+ threshold
General Business
Paying a nanny or housekeeper $2,800 or more in 2025 (indexed for 2026) means withholding and paying Social Security and Medicare via Schedule H; it's not deductible.
Business justification
Paying a nanny or housekeeper $2,800 or more in 2025 (indexed for 2026) means withholding and paying Social Security and Medicare via Schedule H; it's not deductible. The dependent care credit or FSA can offset part of nanny wages.
Category
- Business Equipment & Products