AP taxes

[Anonymous]

Anonymous wrote:

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.

You are not correct. Any time you give someone more than $600 for good or services - it goes on your itemized form. Our weekend babysitter gets her income reported and she reports her income. Ditto our previous nanny share nanny. Ditto housekeeper.

[Anonymous]

Are you talking about paying the nanny tax? I don’t believe that applies for au pairs.

[Anonymous]

From the CCAP website:

The U.S. Internal Revenue Service (IRS) considers au pairs to be “employees” of the host family for tax reasons, even though they are in the United States on a cultural exchange visa. Therefore, the weekly au pair stipend is subject to U.S. income taxes. Au pairs are responsible for declaring their own income, submitting a tax return and paying taxes if necessary.

Withholding for Au Pair Taxes
Because au pair wages are deemed by the IRS to be paid for domestic service in a private home, they are not subject to mandatory income tax withholding on Forms 941 and W-2 by the host family. Host families usually do not need to pay federal unemployment taxes for their au pair or to withhold Social Security and Medicare taxes. There are some rare cases where this rule might not apply – please refer to the IRS website for more details.

[Anonymous]

Anonymous wrote:

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.

Agreed, it seems like mostly bitter nannies posting here to try and confuse host parents.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

Agreed, it seems like mostly bitter nannies posting here to try and confuse host parents.

Why would nannies be bitter about whether or not APs pay taxes?

[Anonymous]

HFs are required to report stipend, educational credits, and perks as income. APs are likewise required. Then, the IRS matches up the returns.

[Anonymous]

If you don’t know what you are talking about or are intentionally trying to confuse people, please don’t post on here.

Here is a link to the IRS webpage on the topic of au pair taxes:

https://www.irs.gov/individuals/international-taxpayers/au-pairs

[Anonymous]

Yes, the information regarding reporting to the IRS (like you would your housekeeper or nanny) stated above is incorrect.

To clear up any confusion, this is from the APIA website:

Q. Is Schedule H (Form 1040) required to be filed by the host family?

A. Since stipend amounts to the Au Pair are not considered wages for the purpose of Social Security Taxes, Medicare Taxes or Federal Unemployment Taxes, and since the Host Family is not required to withhold Federal Income Tax, Schedule H is not required to be filed.

According to the IRS website posted above, only in the rare situation that your au pair is a "resident alien" instead of the usual "nonresident alien" reporting may be necessary.

[Anonymous]

Anonymous wrote:Yes, the information regarding reporting to the IRS (like you would your housekeeper or nanny) stated above is incorrect.

To clear up any confusion, this is from the APIA website:

Q. Is Schedule H (Form 1040) required to be filed by the host family?

A. Since stipend amounts to the Au Pair are not considered wages for the purpose of Social Security Taxes, Medicare Taxes or Federal Unemployment Taxes, and since the Host Family is not required to withhold Federal Income Tax, Schedule H is not required to be filed.

According to the IRS website posted above, only in the rare situation that your au pair is a "resident alien" instead of the usual "nonresident alien" reporting may be necessary.

You are wrong and apparently cannot read the IRS info you are trying to cite: “au pair wages are includible in the gross income of the recipients, and au pairs are required to file U.S. individual income tax returns.” Perks are also includable as gross wages.” HFs ARE supposed to report same as income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes, the information regarding reporting to the IRS (like you would your housekeeper or nanny) stated above is incorrect.

To clear up any confusion, this is from the APIA website:

Q. Is Schedule H (Form 1040) required to be filed by the host family?

A. Since stipend amounts to the Au Pair are not considered wages for the purpose of Social Security Taxes, Medicare Taxes or Federal Unemployment Taxes, and since the Host Family is not required to withhold Federal Income Tax, Schedule H is not required to be filed.

According to the IRS website posted above, only in the rare situation that your au pair is a "resident alien" instead of the usual "nonresident alien" reporting may be necessary.

You are wrong and apparently cannot read the IRS info you are trying to cite: “au pair wages are includible in the gross income of the recipients, and au pairs are required to file U.S. individual income tax returns.” Perks are also includable as gross wages.” HFs ARE supposed to report same as income.

Wrong, wrong, wrong. There is no reporting requirement for Host Families. None.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Yes, the information regarding reporting to the IRS (like you would your housekeeper or nanny) stated above is incorrect.

To clear up any confusion, this is from the APIA website:

Q. Is Schedule H (Form 1040) required to be filed by the host family?

A. Since stipend amounts to the Au Pair are not considered wages for the purpose of Social Security Taxes, Medicare Taxes or Federal Unemployment Taxes, and since the Host Family is not required to withhold Federal Income Tax, Schedule H is not required to be filed.

According to the IRS website posted above, only in the rare situation that your au pair is a "resident alien" instead of the usual "nonresident alien" reporting may be necessary.

You are wrong and apparently cannot read the IRS info you are trying to cite: “au pair wages are includible in the gross income of the recipients, and au pairs are required to file U.S. individual income tax returns.” Perks are also includable as gross wages.” HFs ARE supposed to report same as income.

Wrong, wrong, wrong. There is no reporting requirement for Host Families. None.

You are wrong. AP wages can be used in childcare credit for example - and you do need to provide their SSN and name.

[Anonymous]

We don't report our AP's wages and do not report her social security number. We report the money paid to our agency and their tax ID number.

Definitely don't want to create a headache for our AP to the extent that we can avoid it.

The dependent care credit will max out with the agency fee anyway.