Tax Forms for a Nanny: W-2, Schedule H, and I-9

If you employ a nanny, three federal tax forms do the heavy lifting: Form W-2 reports what you paid her and what you withheld, Schedule H attaches to your Form 1040 and settles the household employment taxes you owe, and Form W-3 transmits the paper W-2 to the Social Security Administration. Getting there requires a few setup forms at hiring — an EIN application (Form SS-4), employment eligibility verification (Form I-9), and a withholding certificate (Form W-4) if your nanny wants federal income tax taken out. Once cash wages hit $3,000 in a calendar year, the reporting obligations kick in.1Internal Revenue Service. Topic No. 756, Employment Taxes for Household Employees

Your Nanny Is an Employee, Not a Contractor

Before any form, settle the classification. The IRS treats a household worker as your employee when you control what work gets done and how it gets done, and Publication 926 names nannies directly on that list.2Internal Revenue Service. Publication 926 – Household Employer’s Tax Guide That means a W-2, not a 1099. Issuing a 1099 to a nanny is one of the more expensive mistakes household employers make; the IRS can come back for the employer and employee share of Social Security and Medicare, plus penalties and interest, for every year the classification was wrong.

Wage Thresholds That Trigger the Forms

Not every babysitter creates a filing obligation. Two dollar figures decide whether tax forms are in your future:

  • $3,000 in cash wages during 2026 to any single household employee. Cross that line and you owe Social Security (6.2% each from you and your nanny) and Medicare (1.45% each), and you must issue a W-2.1Internal Revenue Service. Topic No. 756, Employment Taxes for Household Employees
  • $1,000 in any calendar quarter paid across all household employees. That triggers federal unemployment tax on the first $7,000 of each employee’s wages.3Office of the Law Revision Counsel. 26 USC 3306 – Definitions

The $3,000 threshold is per employee and adjusts periodically, so check Publication 926 before assuming you’re under it. If you also withhold federal income tax at your nanny’s request, you owe a W-2 regardless of the wage amount.2Internal Revenue Service. Publication 926 – Household Employer’s Tax Guide

Setup Forms at Hiring

Form SS-4 for an EIN

You need an Employer Identification Number before you withhold anything. File Form SS-4 online for an immediate EIN, or by mail or fax if you prefer paper.4Internal Revenue Service. About Form SS-4, Application for Employer Identification Number That nine-digit number goes on every household employment form you file after that.

Form I-9 for Work Authorization

Federal law requires Form I-9 for your nanny. She completes Section 1 on or before her first day; you complete Section 2 within three business days after examining her identity and work authorization documents.5U.S. Citizenship and Immigration Services. Who Must Complete Form I-9 There is a narrow exception for casual, sporadic domestic work; a regularly scheduled nanny does not qualify. Keep the I-9 for three years after hire or one year after employment ends, whichever is later.6U.S. Citizenship and Immigration Services. I-9, Employment Eligibility Verification

Form W-4 if Withholding Income Tax

You are not required to withhold federal income tax from a nanny’s pay, but if she asks you to, have her complete Form W-4 before her first paycheck.7Internal Revenue Service. Form W-4 (2026) Employee’s Withholding Certificate The W-4 tells you how much to take out each pay period, or lets her claim exemption if she expects no income tax liability. Collect her Social Security number and legal address at the same time.

Schedule H: The Annual Household Employment Tax Form

Schedule H attaches to your personal Form 1040 and is where household employment taxes are calculated and paid.8Internal Revenue Service. About Schedule H (Form 1040), Household Employment Taxes It has three parts:

  • Part I calculates Social Security and Medicare (both shares) and reports any federal income tax you withheld.9Office of the Law Revision Counsel. 26 USC 3111 – Rate of Tax
  • Part II calculates federal unemployment tax on the first $7,000 of wages, with a credit of up to 5.4% for state unemployment taxes paid on time, which typically brings the effective rate to 0.6%.10Office of the Law Revision Counsel. 26 USC 3301 – Rate of Tax
  • Part III totals everything and produces the number you carry to Schedule 2 (Form 1040), line 9.11Internal Revenue Service. Schedule H (Form 1040) – Household Employment Taxes

Schedule H is filed once a year with your return. It is the standard form for families whose only employee is a nanny; if you already run a business with payroll, there is an option to fold household taxes into Forms 940 and 941 instead.12Internal Revenue Service. Forms 940, 941, 944 and 1040 (Sch H) Employment Taxes

Form W-2: What Your Nanny Gets

You must prepare a W-2 for a household employee you paid $3,000 or more, or one from whom you withheld any federal income tax.2Internal Revenue Service. Publication 926 – Household Employer’s Tax Guide The boxes that matter most:

  • Box 1: total wages paid during the year.
  • Box 2: federal income tax withheld, if any.
  • Boxes 3 and 5: Social Security wages and Medicare wages, which for most nannies equal Box 1.
  • Boxes 4 and 6: Social Security tax withheld (6.2% of Box 3) and Medicare tax withheld (1.45% of Box 5).

Getting Boxes 3 through 6 right matters beyond your own return. The Social Security Administration uses those figures to track your nanny’s lifetime earnings and future benefits, and errors can shortchange her retirement or disability record years later.

Form W-3 as the Transmittal

Form W-3 is the summary that goes with paper W-2 copies sent to the SSA.13Internal Revenue Service. General Instructions for Forms W-2 and W-3 If you file electronically through the SSA’s Business Services Online portal, the system generates the W-3 for you and no separate form is required.14Internal Revenue Service. Forms W-2 and W-3

Deadlines and Late-Filing Penalties

Two dates run the calendar:

  • January 31. Furnish Copies B, C, and 2 of the W-2 to your nanny by this date, and file Copy A with the SSA the same day, either electronically or on paper with a W-3. When January 31 falls on a weekend, the deadline shifts to the next business day.15Social Security Administration. Deadline Dates to File W-2s
  • April 15. Schedule H is due with your Form 1040. If you extend your personal return, Schedule H extends with it, but any tax owed is still due by the original deadline.

Late W-2 penalties escalate. For returns due after December 31, 2026, the charge is $60 per form corrected within 30 days, $130 per form filed more than 30 days late but by August 1, and $340 per form filed after August 1 or not filed at all, plus interest on unpaid amounts.13Internal Revenue Service. General Instructions for Forms W-2 and W-3

Paying the Tax During the Year

Household employers do not make quarterly federal deposits the way businesses do. Your Schedule H total flows into your personal 1040 and gets paid with your income tax. That once-a-year settlement can be large enough to trigger an underpayment penalty, so the IRS suggests covering it in advance one of two ways:

  • File a new W-4 with your own employer requesting extra withholding each pay period. Simplest option if you receive a salary.16Internal Revenue Service. 2026 Form 1040-ES
  • Send quarterly estimated payments using Form 1040-ES. Better fit if you are self-employed or otherwise have no salary withholding to adjust.

Payments can go through the Electronic Federal Tax Payment System, IRS Direct Pay, debit or credit card, or a check with the 1040-ES voucher.

State Forms Are Separate

Federal forms are only part of the picture. Most states require you to register for a state employer account number within a few weeks of hiring, and state unemployment insurance returns are generally filed quarterly rather than annually. Some states add disability insurance or paid family leave contributions, and a number of states or localities require workers’ compensation coverage for domestic employees. Rates and thresholds vary, so check your state labor department’s guidance in addition to your federal filings.

Records to Keep

The IRS requires household employers to keep employment tax records for at least four years after the fourth-quarter return for that year is filed.17Internal Revenue Service. Employment Tax Recordkeeping Six years is a safer target because certain audits reach back that far. Keep copies of every W-2 you issued, filed Schedule H forms, a log of every payment (date, amount, pay period), the signed W-4 if applicable, the I-9 with supporting documents, and your EIN confirmation letter. A spreadsheet and a labeled folder do the job.