AP taxes

[Anonymous]

Anonymous wrote:

Anonymous wrote:Anyone? Does an AP who spend part of last year still owe taxes even if they've gone home?

Yes, AP still owes the tax even if they left the country. But you are not responsible for collecting it, or making sure it's paid.

I know but I'm sure she wont remember so I want to remind her. Thanks!

[Anonymous]

Anonymous wrote:Since what year do the Au Pairs have to pay these taxes?

I was an AP 20 years ago and never heard about any taxes back then, and then went back to the US numerous times and never had a problem.

The tax law changed 2 years ago when the Trump tax cuts were passed. There is no longer a federal exemption for non-resident aliens (which au pairs are), that means they are taxed on every dollar of their stipend.

[Anonymous]

Anonymous wrote:Since what year do the Au Pairs have to pay these taxes?

I was an AP 20 years ago and never heard about any taxes back then, and then went back to the US numerous times and never had a problem.

Since Orange face messed up everything.

[Anonymous]

Well, that's sad, they don't make much money in the first place.

[Anonymous]

Anonymous wrote:Well, that's sad, they don't make much money in the first place.

I'm going to pay the taxes for my AP.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They have to pay taxes on their stipend, educational stipend, a portion of their cell phone, a portion of their car insurance, a portion of their gas, meals out, vacations, etc.

No AP is paying taxing on a portion of their meals out, vacations, car insurance or any of that stuff. Give me a break.

They don’t report it as income, nor do HF. Therefore they don’t pay taxes on it.

Um, yes. They do.

Who in their right mind tracks every meal out, the percentage of car usage when AP is off the clock, AP’s portion of vacation, portion of cell phone used when off? Come on...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They have to pay taxes on their stipend, educational stipend, a portion of their cell phone, a portion of their car insurance, a portion of their gas, meals out, vacations, etc.

No AP is paying taxing on a portion of their meals out, vacations, car insurance or any of that stuff. Give me a break.

They don’t report it as income, nor do HF. Therefore they don’t pay taxes on it.

Um, yes. They do.

Who in their right mind tracks every meal out, the percentage of car usage when AP is off the clock, AP’s portion of vacation, portion of cell phone used when off? Come on...

How are you rationalizing that this is not taxable as income? Crazy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They have to pay taxes on their stipend, educational stipend, a portion of their cell phone, a portion of their car insurance, a portion of their gas, meals out, vacations, etc.

No AP is paying taxing on a portion of their meals out, vacations, car insurance or any of that stuff. Give me a break.

They don’t report it as income, nor do HF. Therefore they don’t pay taxes on it.

Um, yes. They do.

Who in their right mind tracks every meal out, the percentage of car usage when AP is off the clock, AP’s portion of vacation, portion of cell phone used when off? Come on...

How are you rationalizing that this is not taxable as income? Crazy.

Unless you make it clear to the AP during matching that all extras will be taxed AND give the option to forego all the extras, I don’t think it should be taxable. As I asked before, how do you track the percentage of the car wear and tear that is work versus free time (work isn’t taxable), the percentage of cell phone use that is work (not taxable) versus personal use, AP’s portion of vacation? Meals out are the easiest (IMO), because all you’d have to do is request one check for AP, one for you, and hold onto the receipt for AP (if you pay it). Of course they pay taxes on their stipend, since it’s traditional income, and the educational stipend is easiest enough to add on as well.

But I think it’s very disingenuous to list all of the above as taxable income AFTER AP has come here, with the expectation that they will be treated like part of the family (au pair=on par). Would you really list anything more than the weekly stipend and educational amount as income for your adult child or niece/nephew?

[Anonymous]

According to the CCAP tax instructions, the au pair is to take their weekly salary and multiple by the number of weeks to calculate the total tax burden.

[Anonymous]

We tax the stipend, educational credit, 1/2 of the cell phone, the gym membership, and flights home. We do not tax meals out, tickets, gas. Our accountant says we should, but we do not because we do not want to get into the weeds with having to keep all receipts.

[Anonymous]

Anonymous wrote:We tax the stipend, educational credit, 1/2 of the cell phone, the gym membership, and flights home. We do not tax meals out, tickets, gas. Our accountant says we should, but we do not because we do not want to get into the weeds with having to keep all receipts.

As the host family you aren't in charge of taxing any of this. This is completely up to the AP to handle. You don't issue the AP a 1099 or anything like that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We tax the stipend, educational credit, 1/2 of the cell phone, the gym membership, and flights home. We do not tax meals out, tickets, gas. Our accountant says we should, but we do not because we do not want to get into the weeds with having to keep all receipts.

As the host family you aren't in charge of taxing any of this. This is completely up to the AP to handle. You don't issue the AP a 1099 or anything like that.

As the HF you are in charge of reporting income. You should be including all perks and monies paid as income to the AP. Then the AP does the same thing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:They have to pay taxes on their stipend, educational stipend, a portion of their cell phone, a portion of their car insurance, a portion of their gas, meals out, vacations, etc.

No AP is paying taxing on a portion of their meals out, vacations, car insurance or any of that stuff. Give me a break.

They don’t report it as income, nor do HF. Therefore they don’t pay taxes on it.

Um, yes. They do.

Who in their right mind tracks every meal out, the percentage of car usage when AP is off the clock, AP’s portion of vacation, portion of cell phone used when off? Come on...

How are you rationalizing that this is not taxable as income? Crazy.

Unless you make it clear to the AP during matching that all extras will be taxed AND give the option to forego all the extras, I don’t think it should be taxable. As I asked before, how do you track the percentage of the car wear and tear that is work versus free time (work isn’t taxable), the percentage of cell phone use that is work (not taxable) versus personal use, AP’s portion of vacation? Meals out are the easiest (IMO), because all you’d have to do is request one check for AP, one for you, and hold onto the receipt for AP (if you pay it). Of course they pay taxes on their stipend, since it’s traditional income, and the educational stipend is easiest enough to add on as well.

But I think it’s very disingenuous to list all of the above as taxable income AFTER AP has come here, with the expectation that they will be treated like part of the family (au pair=on par). Would you really list anything more than the weekly stipend and educational amount as income for your adult child or niece/nephew?

This is silly - its not the HF that decides what is taxable - its the government.

[Anonymous]

How does the host family report income? I was under the impression that tax withhold and w-2s were voluntary and that, otherwise, it was just up to AP to truthfully report all of her income. Please correct me if I’m wrong!

[Anonymous]

Anonymous wrote:How does the host family report income? I was under the impression that tax withhold and w-2s were voluntary and that, otherwise, it was just up to AP to truthfully report all of her income. Please correct me if I’m wrong!

You are correct. I am starting to doubt that many people on this forum are actual host parents.