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08 September 2011 @ 02:16 pm
nanny tax  
I will be working 20-30 hours a week as a nanny for a local family. I was pretty desperate for a job when they hired me, and I told them point blank that would take the job whether they wanted to declare me on their taxes or not. They have since decided not to. However, I would be much more comfortable paying the "nanny tax" rather than being paid under the table, but I don't want to request this and possibly lose the job that I need so badly. Is there any way for me to pay my taxes on the income I'm earning without the family counting me as an employee? Has anyone else been in this situation, and do you have any advice?

HannahMcStar: music is...hannastar on September 8th, 2011 06:41 pm (UTC)
I'm not sure if it's the same in the US but in the UK you can register as self-employed, do a tax return and pay your taxes & national insurance without having to specify exactly where the money came from. I did it a couple of years ago (not because my employers were tax-dodging! It was just a lot more straightforward because I'd worked for several different families within a year.) Being self-employed can be a bit of a headache but (again, assuming it's approximately the same where you live) you can offset any work-related spending against your earnings and pay less tax. Maybe try calling whatever organisation is responsible for taxes in your area and asking them about self-employment?

(Also, off-topic, I checked your LJ to see whether you were in the UK and I LOVE the Manics tattoos!)
romanfeatures on September 8th, 2011 08:57 pm (UTC)
Thanks for the advice - I might see if there is somewhere I can call anonymously and ask both about self-employment and what the best approach to this situation is.

And thank you! I'm obviously never ever on LJ and I was trying to show a friend my tattoos but I don't even know how to post a picture in a comment, hence the one and only post in my journal. I know band tattoos can be a bit much but I'm 27 and have had them for 7-8 years and don't regret them yet!
igotpiigotpi on September 9th, 2011 01:11 am (UTC)
I have my taxes prepared as self employed. Tax people won't ask you many questions, if any, about the situation. I think I told mine that I was doing childcare out of my house but I know he didn't ask for me to tell him that. He prepared tax stubs, I pay them quarterly and then cry.

Just an FYI, employers are required to pay about 10% of your taxes and by them not doing it, you're paying their portion. I would just have an honest heart to heart with them before you call.
maric3l_ @ livejournal . comfor_mari_sale on December 5th, 2011 10:10 pm (UTC)
My employer pays SS & Unemployment...I'm responsible for federal. I have someone do my taxes...makes it much easier! I end up paying though :(!
Росита Омлетасbethoven on September 27th, 2011 08:46 pm (UTC)
if you are willing to take a pay cut, you can ask the family to do your taxes. basically, if they now pay you X per hour, I do no think they will care if the same X = Y + Z and Y goes to the IRS and Z goes to you. as long as their expense stays the same.