It’s tax season, but fear not! While filing taxes as a nanny can lead to questions and uncertainty, understanding the basics can help you stay organized, avoid surprises, and protect your financial future. Whether this is your first year in a nanny role or you are a seasoned professional, we’ll guide you through everything you need to know for the 2026 tax season.

Quick note: While some of this information may apply to nannies in other states, this article focuses specifically on California requirements.

1) Know Your Employment Status

The first step in filing taxes as a nanny is understanding your classification. In most cases, nannies are considered household employees, not independent contractors. This distinction matters because it determines how you report income and who is responsible for payroll taxes.

If you earned $2,800 or more from one family during the 2025 calendar year, that family is considered your household employer under IRS guidelines. This threshold was $2,700 for the 2024 calendar year and increases periodically.

As a household employee, this means you should receive a W-2 form and that your employer is responsible for withholding and paying certain payroll taxes.

A helpful rule of thumb: if you were placed in your position through a reputable agency, you are almost certainly classified as a household employee. If you are unsure, review your work agreement or ask your employer for clarification. Proper classification is essential when filing taxes as a nanny.

2) Get Your W-2 Form

If you are a household employee, your employer is legally required to provide you with a Form W-2 by January 31 each year. This form reports your total wages and any taxes withheld.

If you have not received your W-2, reach out to your nanny family ASAP. Filing taxes requires accurate documentation, and your employer is obligated to supply this form. If they haven’t supplied it by January 31st, they still can (and should!). Certain fees apply for late filing, and they increase as time goes on, so doing it sooner rather than later is highly encouraged. 

Once you receive your W-2, review the information carefully. Confirm that your name, Social Security number, and earnings are correct.

3) Understand Payroll Taxes

When filing taxes, it is important to understand payroll taxes, also known as FICA taxes. These include Social Security and Medicare.

The total FICA rate is 15.3 percent of your wages. Typically:

• 7.65 percent is withheld from your paycheck
• 7.65 percent is paid by your employer

Ideally, these taxes have been withheld throughout the year. Your W-2 should reflect those withholdings.

If taxes were not withheld, you may owe more when you file your return. In that case, it may be worth discussing proper payroll setup with your employer for the future to avoid surprises next year.

4) File Your Federal and California State Taxes

California has a state income tax, so you will need to file both a federal return and a state return.

When filing taxes as a nanny, you will use the information on your W-2 to complete:

• Your federal tax return with the IRS
• Your California state return with the Franchise Tax Board

If your employer took money out of your paychecks for taxes throughout the year, that money counts toward what you owe, so you may end up owing less (or even getting a refund) when you file your return.

If income taxes were not withheld, you may owe taxes when you file. Some nannies choose to adjust withholding or make estimated payments during the year to better manage cash flow.

The IRS website and the California Franchise Tax Board website are your go-to sources for updated forms, deadlines, and instructions.

5) Stay Organized and Informed

Filing taxes as a nanny becomes much easier when you stay organized throughout the year. Keep copies of:

• Your pay stubs
• Your W-2
• Any relevant correspondence about payroll

Tax laws and income thresholds can change annually. For example, the household employee wage threshold increased to $2,800 for 2025 wages. Reviewing updates each year helps you stay informed and avoid confusion.

If you ever receive a 1099 instead of a W-2 but believe you are functioning as a household employee, it may be worth consulting a tax professional. Misclassification can affect both you and your employer.

6) Need Help Filing Taxes as a Nanny? Don’t Be Afraid to Ask

If filing taxes as a nanny feels confusing, you are not alone. A qualified tax professional can help ensure you are filing correctly and claiming any credits or deductions you are eligible for.

It is always better to seek expert advice than to guess and risk penalties later.

Tax season may not be anyone’s favorite time of year, but being proactive makes all the difference. Understanding your employment status, reviewing your documents carefully, and filing on time sets you up for long-term financial stability. That peace of mind is well worth the effort.

Disclaimer: Westside Nannies is a referral agency, not a tax advisor. This information is not meant to replace advice from a licensed tax professional. For tax-specific questions, please consult a qualified expert.

Found this helpful? Check out our other articles for more guidance designed to support your success as a professional nanny.

How Being on Payroll as a Nanny Works

How to Navigate Nanny Contracts and Avoid Misunderstandings

How Do I Track Mileage? A Nanny’s Guide to Getting Reimbursed Fairly