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Childcare other than Daycare and Preschool
Reply to "Dependent Care Flexible Spending account and under the table nanny "
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[quote=Anonymous][quote=Anonymous]If your nanny sets-up her own 1099 (i.e she pays her own taxes), you can use that dependent care money. [/quote] Not true in the long run. Nannies are not 1099 independent contractors. They are w2 domestic employees so OP would still be on the hook for back taxes plus fines for not withholding ad paying into the employer's tax responsibilities.[/quote]
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