How the Nanny Tax Works for Household Employees in 2026

Lucas and Luna tackle the so-called 'nanny tax' — the IRS rules for household employees like nannies, elder caregivers, and house cleaners. They walk through the $2,800 threshold for 2026, what forms you need (Schedule H, W-2, W-3), and the Social Security and Medicare tax split. Lucas explains why many families accidentally misclassify workers as independent contractors and the penalties that follow. Luna shares a story about a friend who got a notice three years after hiring a part-time caregiver. They also cover the state-level complications, including unemployment insurance and paid family leave contributions. By the end, listeners will know exactly when they become a household employer and how to stay compliant without overpaying. #NannyTax #HouseholdEmployee #ScheduleH #TaxCompliance #PayrollTax #IRS #FICA #EmployerTax #Misclassification #IndependentContractor #W2 #W3 #SSN #StateUnemploymentTax #PaidFamilyLeave #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo