Tax Question: W2 and not withholding income tax

[Anonymous]

We do not withhold federal or state income tax for our nanny. I'm in the process of doing her W2 and trying to figure out if I even fill out the line for state taxes and if so do I just zero out the tax portion since we withheld nothing?

[webbkathy]

You must report the wages subject to Federal and State income taxes on her W-2 form. If you withheld zero, then that is what you enter in the boxes for Federal and State income tax withholding.

[Anonymous]

Thanks! I checked with my state dept. of taxation and they said the same thing.