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Reply to "Federal Nanny Tax Question"
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[quote=Anonymous][quote=Anonymous]We pay quarterly estimated tax payments. We have a CPA help us out so I cannot tell you where you went wrong but I can say that while our nanny's salary did not change, her taxes went up in general. Since taxes are an estimate, probably they are just up a bit.[/quote] It sounds like OP owed both years she had a nanny, not that anything changed. OP, if you want to stop making quarterly payments after next year (or maybe it's 3 years? I can't remember ...), you can increase your own withholding to cover the taxes you'll owe on the nanny at the end of the year.[/quote]
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