Tax season is here again, and if you’re a nanny in California, you might be wondering what you need to do to stay on top of your taxes. We get it, taxes can be confusing, and no one wants to deal with unexpected surprises from the IRS. But no need to worry! We’re breaking it all down so you can handle tax season with confidence.
(Quick note: While some of this information may apply to nannies in other states, we’re focusing on California-specific details in this guide.)
- Know Your Employment Status
First things first: are you an employee or an independent contractor? This is really important because it affects how you file your taxes. In most cases, nannies are considered household employees, meaning the family that hires you is your employer. If you earned $2,700 or more from one family in 2024, they are officially your employer in the eyes of the IRS. (This threshold changes each year. Last year, it was $2,300.)
A good rule of thumb? If you were placed in your job through Westside Nannies, you’re almost certainly a household employee. If you worked with another agency and you’re not sure, you can always reach out to them, or refer to your contract, to double check.
- Get Your W-2 Form
If you’re a household employee, your employer (your nanny family) should have provided you with a W-2 form by January 31st. This form lists how much you earned and any taxes that were withheld.
Haven’t received your W-2 yet? Now’s the time to politely remind your employer. They’re required by law to provide you with one!
- Understand Payroll Taxes
As a household employee, both you and your employer are responsible for payroll taxes, including Social Security and Medicare (FICA taxes). Ideally, these taxes are being withheld from your paycheck throughout the year. Double-check your W-2 to make sure everything looks correct.
- File Your Federal and State Taxes
California has a state income tax, so you’ll need to file both federal and state tax returns. When filing, use the information from your W-2 and any other relevant tax documents you receive.
If your employer didn’t withhold taxes from your paychecks throughout the year, you may need to make estimated tax payments or settle up when you file.
- Stay Up to Date
Tax laws can change, so it’s always a good idea to stay informed. The IRS.gov and the California Franchise Tax Board websites are great places to find the latest updates.
Need Help? Don’t Be Afraid to Ask!
If you’re feeling overwhelmed, a tax professional can help ensure you’re filing correctly and maximizing any deductions you’re eligible for. Our two cents? It’s always better to get expert advice than to guess and risk penalties later.
We know tax season can feel stressful, but being proactive makes all the difference. Understanding your employment status, keeping track of your paperwork, and filing on time will make the process so much smoother. Plus, staying on top of your taxes helps set you up for financial stability, and that’s always a win. Here’s to a stress-free tax season!
Disclaimer: Westside Nannies is a referral agency, not a tax advisor. For tax-specific questions, be sure to consult a tax professional.