Do I Owe Nanny Tax? 60-Second Check
A short screener that walks the Publication 926 tests in order: whether the worker is your employee rather than self-employed, whether a family exemption applies, and whether expected cash wages cross the 2026 threshold. It gives a fact-framed estimate with the rule behind each answer.
Works offline — your inputs never leave this device. How that works
Yes — the nanny tax likely applies to you
Paying a household employee $20,000 in cash wages crosses the $3,000 Pub 926 threshold, which triggers Social Security and Medicare taxes (and usually FUTA + state unemployment tax). Schedule H reconciles it on your 1040.
A screener, not a determination: it reflects the Publication 926 tests applied to the answers above. Household-employment facts vary, and state rules add their own registration and insurance requirements.
Verified 2026-07-31 against Publication 926 (2026), Household Employer's Tax Guide (effective 2026-01-01)
Estimate only — not legal, tax, or financial advice. Only IRS can determine your actual amounts.
Official source: IRS Publication 926 — Household Employer’s Tax Guide ↗
🎓 Understand this tool
What it is
A short screener that applies the Publication 926 tests in the order the IRS applies them: is the worker your employee, does a family exemption apply, and do expected cash wages cross the annual threshold.
How it works
The first question is the common-law control test — who sets the schedule and directs the work. The second checks the family exemptions Pub 926 lists for a spouse, a parent, a child under 21, or an employee under 18. The last compares expected cash wages to the verified $3,000 threshold for 2026 and mentions the separate $1,000-per-quarter FUTA trigger.
Getting the most from it
- Answer whether you pay cash wages and control how the work is done.
- Flag any family relationship that Pub 926 treats as exempt.
- Enter the wages you expect to pay across the year.
- Read the rule quoted with the verdict, then open Publication 926 for the full conditions.
Reading your result
A "maybe" is a real answer here: worker classification and family exemptions turn on facts a screener cannot see. Treat the result as a pointer to the right section of Pub 926 rather than a determination.
What it can't tell you
It covers the federal tests only and cannot resolve borderline classification questions, state registration requirements, or workers-compensation mandates. Nothing you enter is stored or transmitted.
Frequently asked questions
The IRS common-law test turns on control: if you set the schedule, the duties, and how the work is done, the worker is generally your employee. Someone who controls their own work, brings their own tools, and serves other clients is generally self-employed and handles their own taxes.
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