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nanny tax
noun
the portion of Social Security and Medicare taxes paid by the employer of a nanny, gardener, or other household worker.
51³Ô¹Ï History and Origins
Origin of nanny tax1
Example Sentences
“It’s people who don’t have a lot of time, make a lot of money, don’t want the ‘nanny tax’ thing and want the job done right.â€
Some people focus, incorrectly, on the worker’s title, or whether they are full time or part time, said Laura Weiland, president of the Nanny Tax Company, in Park Ridge, Ill.: “In their heads, they say, ‘I just have a babysitter; she’s not a nanny.’â€
It’s helpful to get over the notion that, although its short hand is “nanny tax,†this does not only pertain to a full time Mary Poppins, but, perhaps, to the neighborhood Kristy, Mary Anne, Claudia and Stacey too.
If a person cares for the child in your home, you could have "nanny tax" issues.
Depending on your income, you can deduct a percentage of what you pay for child care, up to a few thousand dollars per kid. Of course, keep in mind that if you deduct the cost of an in-home nanny or babysitter — even if it’s just the neighbor’s teenaged kid — you’ll be expected to pay the so-called “nanny tax†during the time you employ them.
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