Schedule H and mom as a nanny

Forum|Forum|4 years ago
April 10, 2022
1 reply
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I want to file schedule H with my mother in law being my nanny. Can I do that? The forms says you don’t have to for parents, but I want to because she doesn’t have enough work credits to be eligible for social security. I understand there will be taxes to be paid on both sides, but I am willing to do that.

Not A Product Question

DawnC

Employee

She won't get the social security credit from your Schedule H. To get the credit, she needs to file a tax return claiming the amount you paid her. If you paid her through payroll checks, she would have a W-2 from you to file and you would include that income on your Schedule H. But it doesn't sound like you went that route. If she was not treated as an employee, she can file a Schedule C to report the income. She will pay self-employment tax on the income which will be credited to her social security account. Any amount she claims on a tax return for caring for your dependent counts as credit for the purposes of the dependent care credit for you.

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H

Huan2021

If she files schedule C, will she need to sign up for an EIN, get licenses, etc. Doesn't she need to get a 1099 form? Or can she just report income and pay the social security and medicare taxes?

V

Vanessa A

No, you do not need an EIN for a Schedule C. A Schedule C is for a self-employed individual which means they can use their SSN.

You can report your income on the Schedule C with or without a 1099 as a self-employed individual should keep track of their expenses and income. They will also be responsible for paying Self-Employment (Social Security and Medicare) taxes when they file their return.

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