View Full Version : Can I hire a nanny for our newborn as a PR?

01-13-2011, 04:52 AM
As a permanent resident can I hire a nanny and pay the related taxes as her employer?

01-13-2011, 01:31 PM
Generally anyone can hire a nanny when the go through a nanny service provider ( an organization to whom you pay and they pay to the nanny)

Many cities in America will have a Social Services department where you can find the numbers of nannies who are approved for work and the employment formalities to hire them

Coming to your point, as a PR, you can certainly hire a nanny but it is a lot easier if a middleman company / organization is hired and they hire a nanny

It is a lot easier this way because nannies work will be insured form any accidents etc
Example: If she ends up (inadvertently or purposefully ) causing some trouble to your family, an insurance company will get involved and pay damages

Some nannies (example in my area) offer their service by self purchasing an insurance and they advertise that they are bonded, insured. They also come with excellent referrals from local community area and offer their social security number if you like to do a crime check

This way you can pay them without any legal formalities (like W2 and all that headache)
You pay them exactly as you would pay in walmart when you buy milk or some product

Hope this helps

01-13-2011, 01:56 PM
As a permanent resident can I hire a nanny and pay the related taxes as her employer?

if you incorporate , yes .
otherwise I guess you cannot.
whether PR or nonPR you can incorporate. For further answers you pose questions at this website
H&R Block Get It Right Community - Ask Your Tax Question (http://getitright.hrblock.com/)

01-13-2011, 02:24 PM
Ask a CPA about the tax question. You can claim the amout paid to nanny in your tax return. It is sure. But I don't know, if nanny should come from an organization or as an independant contractor with 1090. I used to get deduction from the amount which I did paid to the daycare expenses, while I am in H1B.

01-13-2011, 02:46 PM
OP : Please clarify if you are talking about
1) You pay nanny like 10K and you try claim deductions as 10k in your taxes
2) you pay nanny like 10k and also pay employer part ssn taxes ( 7.5%) as her employer.

which one you are talking about?