Regarding illegal alien taxes, my nanny is an illegal alien and I paid her under the table. She’s planning on filing a return and using her individual tax identification number. If the IRS asks who she works for, will I be penalized?
It’s unlawful to employ an undocumented immigrant who can’t legally work in the United States for childcare. When your nanny files taxes, you might face civil or criminal penalties associated with employing her. You should speak with an immigration or employment law attorney for advice on those issues.
Also, the IRS might penalize you for failing to:
- Properly report wages you paid your nanny
- Withhold taxes
- Issue a W-2
When you hire a household employee to work for you on a regular basis:
- You must verify that the employee can legally work in the United States as either of these:
- You and the care provider must each complete part of a form from the U.S. Citizenship and Immigration Services (USCIS). The form is Form I-9: Employment Eligibility Verification.
- You must keep Form I-9 for your records. You can get Form I-9 and the USCIS employer handbook by:
- Calling 800-870-3676
- Going to www.uscis.gov
Changes to the Child Tax Credit in 2018 may affect you. Learn more about new Child Tax Credit changes and other Tax Cuts and Jobs Act details at H&R Block.
Learn more about letter 539, why you received it, and how to handle an IRS 539 letter with help from the tax experts at H&R Block.
Do you need a filing extension from the IRS? Learn how to file IRS extension Form 4868 and get tax answers from H&R Block.
The IRS adjusted your Shared Responsibility Payment and you owe taxes. Learn about notice CP22H and how to address it with help from the experts at H&R Block.