For nannies providing invaluable care and support to families in the Golden State, tax season can seem like a daunting time of year. Sure, navigating the tax landscape can be a bit overwhelming, but fear not – we’ve got you covered. We’ll walk you through the steps needed to get it done. (Please note: while there may be some overlaps between CA and other states, this guide speaks to the specifics of filing taxes in California.)

1. Determine Your Employment Status:
As a referral agency, Westside Nannies is not your employer. However, that doesn’t mean that you do not have an employer. The first step is to determine your employment status. Are you considered a household employee or an independent contractor? In almost all cases, nannies are considered household employees, with the family as the employer. As a rule of thumb, if you earned more than $2300 from any one family in 2023, they are considered to be your employer. (Please note: this figure changed to $2700 for 2024!) This distinction is vital, as it influences the way you file taxes and the taxes you’re responsible for. (Tip: if you’re working a job that Westside Nannies placed you in, odds are you’re a household employee!)

2. Obtain a W-2 Form:
If you are classified as a household employee, your employer (your nanny family) should provide you with a W-2 form by January 31st of each year. This form outlines your earnings and the taxes withheld. Keep this document safe, as you’ll need it for tax filing. If you haven’t received this yet and you are a household employee, now’s the time to ask!

3. Payroll Taxes:
As a household employee, you are responsible for paying payroll taxes, including Social Security and Medicare. Your employer is also required to contribute. Ensure that the correct amounts are withheld from your paycheck and reported on your W-2.

4. File State and Federal Taxes:
California has its own state income tax, so be sure to file both your federal and state taxes. Use the information from your W-2 form to complete the necessary forms.

5. Stay Informed:
Tax laws can change, so it’s crucial to stay informed about any updates that may affect your filing process. The California Franchise Tax Board and the Internal Revenue Service (IRS) websites are the best resources to keep up to date with the latest information.

Filing taxes as a nanny doesn’t have to be intimidating. By understanding your employment status, obtaining the necessary forms, and staying informed about tax regulations, you can navigate the process with confidence. If additional support feels necessary, consider seeking advice from a tax professional. Remember, staying on top of your tax responsibilities ensures a smoother financial journey for both you and the families you support.

Please note: Westside Nannies is a referral agency. We are not tax professionals or attorneys. For all tax-related concerns, please consult a tax professional.