Here are some tax tips for you to consider while planning for your taxes
Pay attention to the nanny tax
Every few years the "nanny tax" becomes a big news story when some high-profile political figure reveals that he or she hasn't paid required nanny taxes. While you may not plan on running for political office, failing to pay the nanny tax on the household workers you employ could result in IRS penalty and interest charges. And that's in addition to the tax itself.
If you paid a household employee - such as a gardener, housekeeper, or nanny - more than $1,600 in wages in 2008, you may have payroll tax obligations to meet.
These taxes are called "nanny taxes." You are generally required to pay social security taxes on your worker's behalf, and you may have other federal and state
payroll tax obligations as well.
If you had household workers in 2008, it's worth contacting our office to discuss your tax obligations. February 2, 2009, is the deadline for sending W-2 forms to your workers if the nanny tax applies for 2008.
Be aware that the nanny tax threshold increases to $1,700 for 2009.
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