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Au Pair Tax Information

While EurAupair is not able to provide specific tax information for au pairs and host families, we are pleased to outline some general guidelines regarding host family and au pair taxes.

Additional information on au pair taxes can be found by going to www.irs.gov and entering the words “au pair” in the search box.

(Updated January 20, 2017)

EurAupair's Federal Tax ID Number: 33-0316910

Au Pair Taxes

The IRS considers au pairs to be employees of the host family for tax reasons, even though they are in the United States on a “cultural exchange” visa. This means that au pairs are required to file U.S. individual income tax returns even though many au pairs will not owe any taxes. Current tax laws state that au pairs who make more than $4,050 in a calendar year may have to pay federal and state taxes. The amount depends largely on when you arrived in the US. If you arrived early in the calendar year (January-March), your first year taxes will be higher. If you arrived towards the end of the calendar year, you may not owe anything until the end of the following calendar year.

In order to file income taxes in the United States, all au pairs need to have either a Social Security Number or an Individual Taxpayer Identification Number (“ITIN”). By April 15, au pairs should file form 1040NR-EZ or 1040NR to report their au pair stipend for the previous calendar year.

Au pairs will usually owe taxes on the difference between their total stipend earnings and the current personal exemption amount which is $4,050 in 2016. 


Example:

An au pair earns a total of $5,872.50 from 30 weeks of stipend during a calendar year. After deducting the $4,050 personal exemption (tax year 2016 and assuming no other deductions or credits), she has taxable income of $1,822.50. Using the 2016 Tax Tables, the au pair would owe $181 in federal taxes.

Au pairs are explicitly not eligible for the Earned Income Tax Credit, The Hope Credit or the Lifetime Learning Credits.

We have included a link to the form 1040NR-EZ from tax year 2016. Please remember that any specific tax questions or issues with the form should be addressed to a tax preparation professional.

Form 1040NR-EZ: 
http://www.irs.gov/pub/irs-pdf/f1040nre.pdf


Please see below step-by-step guide on how to file taxes:

  1. Have your Social Security Number or Individual Taxpayer Identification Number (ITIN).
  2. Calculate how much you have earned during the previous calender year. Multiply the number of weeks you worked as an au pair in the USA in 2016 with the amount of your weekly stipend.  Example:  You were an au pair in the US for 30 weeks in 2016.  You earned $195.75 x 30 weeks = $5,872.50.
  3. Fill out and file a 1040NR-EZ   http://www.irs.gov/pub/irs-pdf/f1040nre.pdf

    If you are not enclosing a payment, mail Form 1040NR-EZ to:

        Department of the Treasury
        Internal Revenue Service
        Austin, TX 73301-0215 U.S.A.

     If enclosing a payment (personal check),  mail Form 1040NR-EZ to:

         Internal Revenue Service
         P.O. Box 1303
         Charlotte, NC 28201-1303 U.S.A


Below are some helpful tips to fill out the 2016 tax form:

  • Enter the total amount you earned in 2016 on line 3, line 7, line 10 and line 12
  • On line 11 enter 0 as au pairs should not have any itemized deductions
  • On line 13 enter $4,050 which is the 2016 exemption amount
  • Subtract the exemption amount ($4,050) from your income reported on line 12 and put it on line 14. This is your taxable income
  • Find your taxable income amount in the 2016 Tax tables to see the amount you will owe in taxes. Put this on line 17 and on line 25
  • Sign and date your form at the bottom of page 1

 

Host Family Taxes

  • There are three specific issues that typically concern host families with regards to taxes and the au pair program:
  • Child and Dependent Care Tax credits
  • Dependent Care Reimbursement Programs (“FSAs”)
  • Withholding requirements for au pair taxes

Child and Dependent Care Tax Credit

As long as the host family has used an au pair’s child care services in order to work or look for employment, the stipend paid to the au pair, the costs of room and board and the fees paid to EurAupair are all eligible under the Child and Dependent Care Tax Credit.

As tax and eligibility laws are continually changing, we recommend that host families contact a tax professional to confirm expense eligibility for the Child and Dependent Care Tax Credit. Please note that EurAupair’s federal tax ID number may only be used to claim the tax credit for fees paid to EurAupair – it may not be used to claim a credit for stipend paid to an au pair or for the cost of room and board.

Dependent Care Reimbursement Programs

The eligibility requirements for these programs (often called “Flex-Spending Accounts” or “FSAs”) are usually identical to those for the Child and Dependent Care Tax Credit. Please note that expenses paid for using Dependent Care Reimbursement Program funds are not also eligible for the Child and Dependent Care Tax Credit.

EurAupair is happy to provide host families with a summary statement of program and other payments received during a tax year. We will provide letters that list either the total amount paid in a given calendar year, or the amount paid in a given calendar year with the dates of the applicable full au pair term of service. Click here to submit a request.

Withholding for Au Pair Taxes

Because au pair wages are deemed by the IRS to be paid for domestic service in a private home, they are not subject to mandatory income tax withholding on Forms 941 and W-2 by the host family.

Host families usually do not need to pay federal unemployment taxes for their au pair or withhold Social Security and Medicare taxes. In the rare case that an au pair has previously been in the United States on a F, J, M or Q non-immigrant visa before becoming an au pair, then they might be considered a “resident alien” during their current stay in the United States. If this is the case, the host family should consult with their tax advisor to determine whether they need to make these withholdings and payments for their au pair.

Please note that EurAupair is not licensed to provide official tax advice, so our staff is unable to answer specific questions regarding individual host family or au pair tax issues beyond the scope of topics covered in this document. Since tax laws vary from state to state and are changed on a frequent basis, we advise host families and au pairs to speak with a local professional tax advisor or directly with the IRS for definitive answers to any specific questions regarding taxation.

EurAupair's Federal Tax ID Number: 33-0316910

 

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