Right. Tutors are not considered household employees - employers do not have to withhold or pay taxes. It is income to you that you need to pay taxes on. |
You are not paying under the table. “ Services not of a household nature, such as services performed as a private secretary, tutor, or librarian, even though performed in your home, aren't considered household work.” https://www.irs.gov/publications/p926#en_US_2024_publink100086725 |
Helpful but, honestly, I don't care either way. |
If it’s not reported to the IRS, it is referred to as being “paid under the table.” It may be illegal; but yes, she is still being paid under the table. |
I pay a FCPS teacher $150/hr to tutor my three kids twice a week, and I also encourage her not to pay tax because my wife and I pay her in the form of a gift tax of 17K each from my wife and I. Problem solved. |
PP here. 18K for 2024. |