If my employer provides a nanny for me, is it taxable income?

I've been working so many hours at work that I can't sustain the pace without some substantial child-care help around the house. There's no sign that it's going to let up any time soon.

If I ask my employer to hire someone to help with our child-care, on their payroll and with them responsible for all the taxes and paperwork, would I have to treat the nanny's salary as taxable income on my taxes?

On the one hand, I can see the argument that my employer would be providing a benefit specifically to me, with clear financial value.

On the other hand, the only reason I'm even thinking about this is because I literally can't continue to do the job that my employer wants me to do without having child-care help, so if my employer wants me to continue working at the pace they've come to expect and rely on, then it's directly to their benefit to provide child-care for me.

This seems sort of analogous to the fact that because I'm expected to be on-call and reachable nearly all the time, and to be able to work from home whenever necessary including in the middle of the night (which happens all too often), my employer pays for both my home internet connection and my cell phone.

Thanks for any insight you can provide.

Reply to
Jonathan Kamens
Loading thread data ...

It seems more analogous to them hiring an administrative assistant for you. The fact that they work at your home and take care of your kids, rather than in the office taking care of your paperwork and phone calls, shouldn't make a difference.

Reply to
Barry Margolin

Realistically, this is an employer paying a personal expense. I can't think of any reason why this wouldn't be considered additional income to you, although you may have an offsetting credit for the child and dependent care credit.

Without spending time looking for it, there is a Tax Court case that holds that a babysitter is not deductible when a parent is engaged in out of town travel. It would seem similar to this situation.

Reply to
brianwallen

Isn't this addressed from the employer's perspective in Pub

15-B?

formatting link

Reply to
paultry

Child care provided by an employer is only excluded from the employee's income if it is available to employees company-wide in a nondiscriminatory manner, and then only up to $5,000 per year. Otherwise the value of what you get is considered taxable income to you.

Sorry.

Reply to
Stuart A. Bronstein

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.