How the Nanny Tax Works for Household Employers

If you hire a nanny, housekeeper, or caregiver in 2026, you are likely subject to the 'nanny tax' — paying Social Security, Medicare, and federal unemployment taxes on their wages. In this episode, Lucas and Luna walk through the current thresholds, the Schedule H filing process, and the surprising way this tax interacts with the Child and Dependent Care Credit. Using a concrete example of a family paying a nanny $2,800 a month, they show exactly how much tax is owed, how to handle withholding, and what happens if you pay off the books. They also cover state-level requirements and the IRS safe-harbor rule for household employers who mistakenly underpay. Practical, specific, and essential for any family or individual who hires domestic help beyond casual babysitting. #NannyTax #HouseholdEmployer #ScheduleH #SocialSecurityTax #MedicareTax #FUTA #ChildAndDependentCareCredit #PayrollTax #IRS #DomesticWorkers #TaxPlanning #TaxCompliance #FamilyFinance #Finance #FexingoBusiness #BusinessPodcast #TaxStrategy #HouseholdHelp Keep every episode free: buymeacoffee.com/fexingo