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nanny tax
noun
- the portion of Social Security and Medicare taxes paid by the employer of a nanny, gardener, or other household worker.
yĐÄvlog History and Origins
Origin of nanny tax1
Example Sentences
âItâs people who donât have a lot of time, make a lot of money, donât want the ânanny taxâ thing and want the job done right.â
Some people focus, incorrectly, on the workerâs title, or whether they are full time or part time, said Laura Weiland, president of the Nanny Tax Company, in Park Ridge, Ill.: âIn their heads, they say, âI just have a babysitter; sheâs not a nanny.ââ
Itâs helpful to get over the notion that, although its short hand is ânanny tax,â this does not only pertain to a full time Mary Poppins, but, perhaps, to the neighborhood Kristy, Mary Anne, Claudia and Stacey too.
If a person cares for the child in your home, you could have "nanny tax" issues.
Depending on your income, you can deduct a percentage of what you pay for child care, up to a few thousand dollars per kid. Of course, keep in mind that if you deduct the cost of an in-home nanny or babysitter â even if itâs just the neighborâs teenaged kid â youâll be expected to pay the so-called ânanny taxâ during the time you employ them.
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