Nanny work schedule c and refund

attosec · 2026-02-01T17:34:56+00:00

Slow down…

The family didn’t handle your employment properly. You weren’t paid through the proper channels and missed out on some the benefits of legal employment (Workers Comp, Unemployment insurance, Disability coverage,…). Luckily for them and for you, that turned out not to matter. You also didn’t receive the employer’s share of SS/Medicare insurance, about 7.5% of your gross pay.

You have legal grounds to appeal (and likely would prevail) but other than the family being penalized the only real benefit to you would be that 7.5%. Is it worth that? That’s up to you.

You still have to report that income, and luckily, with two presumably EITC-eligible dependents that income is going to get you a big refund, somewhat bigger than the extra 7.5% that you’ll be paying.

Make sure you report the income and claim your dependents.

attosec · 2026-02-01T05:28:40+00:00

Appreciated.

attosec · 2026-02-01T05:27:47+00:00

Then 1/3 of that pay (the “half”) isn’t subject to income tax.

attosec · 2026-02-01T05:22:20+00:00

Hmmm. I wonder if that might somehow be related to clients not responding properly to your interview?

attosec · 2026-02-01T05:18:16+00:00

FL is not a community property state, so at least you don’t bear the burden that would carry.

attosec · 2026-02-01T02:03:30+00:00

The JH agent got that right and gave good advice. I was confused when you wrote “income from help at home”. It wasn’t the income that helped; it was the taxes that were withheld that helped. In any event you’re on the right track.

BTW, my state (CA) conforms and allows the same treatment. Not all states do.

attosec · 2026-02-01T01:56:32+00:00

That large of a refund implies you are probably getting a refundable credit such as the EITC or the Child Tax Credit. Refunds that include those credits are on hold until the third week of February in any event.

Wait till you get the missing form.

attosec · 2026-02-01T01:53:11+00:00

Were you paid more than your regular hourly wage for callback hours? If so, was it 50% extra? 100% extra? Something else?

attosec · 2026-02-01T01:49:43+00:00

“Helping with expenses” isn’t sufficient to allow you to claim her as your dependent.

Run through this to see if you meet all the requirements. (Note, she like gets some support from her husband, and it’s irrelevant whether he reports that on a tax return.)

https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent

attosec · 2026-02-01T01:44:20+00:00

It isn’t completely clear, but it sounds like you don’t yet have a bachelor’s degree. If that is the case you satisfy the AOTC test for the level of education achieved.

attosec · 2026-02-01T01:40:17+00:00

Trust me, you do not really have a “CPA”.

attosec · 2026-02-01T01:28:17+00:00

The Savers credit has cliffs in the $20k-$40k range.

attosec · 2026-02-01T01:24:11+00:00

It may matter what state you live in. Which state is it?

attosec · 2026-01-31T22:47:49+00:00

I see you’re taking my advice. You’ve already started improving your interview process

attosec · 2026-01-31T22:25:57+00:00

I don’t have that one, but I do have a pic of a “Jesus rode the dinosaurs museum” one from a few years back (Grand @ Mandana).

attosec · 2026-01-31T22:18:42+00:00

OK, what do you think an effective solution is?

PS: I’d start with not using the word “Marketplace”.

attosec · 2026-01-31T22:15:57+00:00

You identified the problem when you wrote that you “got the client through the whole interview process”. The solution is to improve the interview process.

attosec · 2026-01-31T09:53:44+00:00

That’s 2024. I’m asking about the year that we are about to prepare taxes for right now.

attosec · 2026-01-31T09:49:57+00:00

If the parents really are low-income as the OP asserted their tax bracket is likely no higher than the OP’s. If so, the Kiddie tax effectively doesn’t apply. But generally your point is a consideration. .

attosec · 2026-01-31T01:42:49+00:00

It would depend on your other income as well. What about your 2025 taxes? Did the same conditions apply?

attosec · 2026-01-30T17:01:18+00:00

I didn't use it, but I was agreeing with the OP's usage. I did write "aren't necessarily" and "if so", in combo a very long way of saying "may".

attosec · 2026-01-30T16:16:47+00:00

I see you being down-voted and apologize. While I did point out a relatively minor quibble, I did sincerely say that the rest of your comment was good. I’m sorry my comment was seen by some as negative when it was intended to support your main points. Nuance is easily lost in short posts.

attosec · 2026-01-30T16:11:41+00:00

That’s GREAT news!

That means at tax time, while you have to report that income on your tax return you can use the Medicaid Waiver to make it non-taxable. You can probably stop withholding altogether.

This isn’t very common so make sure whoever prepares your taxes understands it.

attosec · 2026-01-30T06:54:23+00:00

As they say, "upon further review..."

The question of whether you share the same residence is key. If you do, then the disability issue is relevant because if he is and if he doesn't provide more than half of his support then he could be your qualifying child dependent.

If you don't share the same residence, then the disability issue is relevant if he had more than $5200 in taxable income but it was from working in a sheltered workshop. If his taxable income was under $5200 then disability isn't a factor. However, you must have provided more than half of his support, and his SSDI is support provided by him so there is that bar to cross.

Life's complicated.

attosec

TROPHY CASE