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Nanny tax calculator (2026): Schedule H, line by line
Pay a nanny, caregiver or housekeeper $3,000 or more in 2026 and you are a household employer: you owe Social Security and Medicare on all their cash wages (15.3%, half of which you may withhold from their pay), federal unemployment tax once you pay $1,000 in any quarter, and you report it on Schedule H with your Form 1040. Enter each employee's wages; the worksheet computes every line. Free.
What household employers must also do
- Get an EIN and, in most states, register for state unemployment insurance.
- Give each employee a W-2 by January 31 and file Copy A with the SSA — the W-2 generator does the boxes.
- Pay the tax during the year by increasing your own W-4 withholding or making estimated payments, or pay it with the return and risk a penalty.
- Keep records of wages, hours and taxes for four years.
The payroll ledger does each pay period's withholding and stub and carries the totals here and to the W-2s.
Frequently asked
Do I withhold federal income tax?
Only if you and the employee agree (they give you a W-4). Social Security and Medicare are mandatory above the threshold.
My nanny is under 18 / a student?
Wages to an employee under 18 whose principal occupation is being a student are exempt from Social Security and Medicare.
Is a babysitter through an agency my employee?
If the agency sets the pay and controls the work, no. If you hire directly and control the work, yes — even part-time.