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Nanny Tax

Do You Pay Your Nanny Taxes?

In just two short weeks, Uncle Sam will be knocking on your door for those precious pennies — it's tax time! Many parents face the financial dilemma of whether to pay the nanny tax. In an effort to stay legitimate, my husband and I are forking over a bit a dough to cover our caretaker's taxes. Some sitters ask their employers to pay cash to eliminate a paper trail and further line their pockets. We've seen our fair share of politicians fall from grace because of their failure to comply with the tax laws. I'm not taking my chances. What's your plan?

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