How the Nanny Tax Works for Household Employers in 2026

If you pay a nanny, housekeeper, or caregiver more than $2,800 in 2026, you are a household employer subject to the 'nanny tax' — Social Security, Medicare, unemployment, and sometimes workers' comp. In this episode, Lucas and Luna walk through the specific dollar thresholds (including the $1,000 federal unemployment tax trigger), the Schedule H filing process, and the often-overlooked deduction for household payroll taxes that can appear on Schedule C or Schedule A. They discuss the 2026 inflation-adjusted wage base ($176,100 for Social Security), state-level quirks like New York's disability insurance requirement, and a real example of a freelance graphic designer who saved $1,200 by properly deducting her nanny's Social Security taxes against her self-employment income. No scare tactics — just the numbers so you can comply without overpaying. #NannyTax #HouseholdEmployer #ScheduleH #PayrollTax #SocialSecurity #Medicare #FUTA #SelfEmploymentTax #Childcare #ElderCare #TaxCompliance #IRS #TaxDeduction #Finance #TaxStrategy #FexingoBusiness #BusinessPodcast #2026Taxes Keep every episode free: buymeacoffee.com/fexingo