Live In Nanny Room And Board Deduction

In general the internal revenue service see 119 a allows you to exclude from income the value of meals and lodging furnished by the employer when hiring a live in nanny or household worker nanny room and board provided the following conditions are met.

Live in nanny room and board deduction.

How do you figure her room and board for tax purposes. You may give your employee board and lodging which means that you provide them with accommodations and in some cases food. A live in nanny should receive the same rate of pay you would consider for a live out caregiver. While live in nannies and parents should make a point to discuss what is included with room and board typically the following 10 things are part of every live in nannies room and board package.

Live in nannies need their own personal space too. The fact that they receive room and board shouldn t lessen their pay. According to the international nanny association s 2017 salary and benefits survey the national average hourly rate for a full time nanny is 19 14 hour. Room board deductions by living with you and eating meals with your family your nanny is saving considerable sums that she would otherwise need to spend on rent and groceries.

Many parents think that because a live in nanny is receiving free room and board they can pay their nanny less by deducting room and board from their nanny s monthly income or pay them a lower hourly rate or simply have their nanny work in exchange for room and board. As a result you have to add to the employee s salary the. If you provide free lodging or free board and lodging to an employee the employee receives a taxable benefit. 10 things that are usually included in a live in nanny s room and board.

It is for this reason that families deduct room and board costs from the nanny s salary.