How the Nanny Tax Works for Household Employers

Hiring a nanny or household employee means navigating the 'nanny tax' — a set of payroll and income tax rules many families discover only after a surprise bill. In this episode, Lucas and Luna break down the 2026 thresholds, the difference between a household employee and an independent contractor, and why a simple W-2 can save you thousands in penalties. They walk through real numbers for a family paying $20,000 a year, explain the IRS Schedule H filing process, and share the common mistake that triggers audits. If you've ever paid a caregiver, cleaner, or landscaper directly, this episode gives you the practical steps to stay compliant and avoid costly surprises. By the end, you'll know exactly when the nanny tax kicks in, how to register for an employer identification number, and why paying payroll taxes yourself is often better than letting a caregiver handle their own taxes. #NannyTax #HouseholdEmployer #ScheduleH #PayrollTax #W2ForNanny #TaxCompliance #FamilyFinance #CaregiverTaxes #IRS #TaxPlanning #HouseholdEmployee #IndependentContractor #TaxPenalties #EmployerIDNumber #TaxFiling #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo