W2 no federal tax withholdings - who's paying?

The boss is not paying the employee's FICA taxes. Do the math, the numbers are almost exactly correct.

Household employers are NOT required to withhold federal income taxes. That's optional if both the employer and employee agree. See IRS Pub 926, linked below.

The employee is ALWAYS responsible for their own income taxes. If no tax is being withheld it's up to the employee to make quarterly estimated tax payments to cover their tax liability if it will be more than $1,000 or set aside funds to pay the amount due in full by the April 15 filing deadline if it will be less than $1,000.

The employee (babysitter) is always responsible for the taxes. Its possible that the employer was supposed to withhold those taxes up front, but either way its the babysitter's responsibility to pay taxes on their income one way or another.

If you're a full time student living at home and you were 23 or younger on December 31st 2013 then you are still a dependent under your parent's unless you can prove that you payed more than 50% of your own financial support - this includes things like housing, utilities and health insurance which often add up to more than 50%, so its very rare for someone living at home with Mom & Dad to prove they paid 50% of their own support.

The boss has not done any kindness here. He has paid the employer-only share of Social Security and Medicare taxes, like the law requires. The babysitter is still responsible for paying the employee share of Social Security and Medicare, plus federal and state income taxes. It would have been a kindness had the employer withheld the taxes so the employee doesn't have to come up with the full amount of taxes due in a lump sum. The employee owes a Social Security tax of $1200, a Medicare tax of $300, plus whatever federal,state and local income tax is due after credits and exemptions.

No, the boss is not paying the federal income tax out of kindness. $0 was withheld. The babysitter now owes the federal government. She most likely owes state taxes as well. She will pay interest on the taxes owed and be penalized if she cannot make a payment in full.

The boss is NOT paying the employee's state and federal income taxes. The employee owes those taxes just like everyone else does.

How much of the 12,000 of the college tuition is tax deductible depends. The rest is fully taxable. You don't get tax credits for your personal expenses.

The employee pays the income tax, not the employer.

It is up to the employee to submit an appropriately filled out W-4 to the employer so that the employer can withhold the appropriate amount of income tax (if any) from the wages.

If your boss took no tax out of your pay, then he is paying your Social Security and Medicare tax but not income tax. You will owe your income tax.

If you claim your own exemption (not a dependent), your income tax is $1,204. If you have paid $12,000 in tuition, your tax benefits may eliminate this tax. If you qualify for the American Opportunity Credit you might get a refund.

The NANNY does owe the FIT and the owed amount is due to be paid by April 15 2014 for the 2013 tax year and then your SIT income tax amount also owed during the 2014 tax filing season for the 2013 tax year and you should have been making quarterly estimated tax payment in this situation.

When still doing this nanny job during the 2014 tax filing season ask the payer to please withhold the income taxes out of your gross wages for each pay period during the 2014 tax year or else start making your quarterly estimated taxes for the 2014 tax year NOW with the first payment for the 2014 tax year due April 15 2014 and then the other 3 payments 2 and 3 each quarter during the 2014 tax year and then the number 4 due by January 15 2014 for the 2014 estimated tax payment amounts.

The below has nothing at all to do with your 2013 income tax amounts that you do owe by April 15 2014 for the past 2013 tax year.

Go to the www.irs.gov website and use the search box for the 1040ES and then get started on doing your estimated tax calculations for the 2014 tax year so that you will be able to start with the number 1 payment voucher and payment for the April 15 date for your first quarterly estimated tax payment amount and then each quarter during the 2014 tax year with number 2 and number 3 and then the final number 4 payment and voucher that will be due January 15 2015 for that purpose and time in your life.

Form 1040-ES, Estimated Tax for Individuals

Use this package to figure and pay your estimated tax.

Estimated tax is the method used to pay tax on income that is not subject to withholding (for example, earnings from self-employment, interest, dividends, rents,alimony, etc.). In addition, if you do not elect voluntary withholding, you should make estimated tax payments on other taxable income, such as unemployment compensation and the taxable part of your social security benefits.

http://www.irs.gov/uac/Form-1040-ES,-Estimated-Tax...

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

Purpose of This Package

Use Form 1040-ES to figure and pay your estimated tax

for 2014.

Hope that you find the above enclosed information useful. 04/09/2014

The boss hasn't withheld anything for taxes, so it's up to the sitter to figure out how much she owes and will have to cut a check for the full amount.

You are paying. As a babysitter you are a household employee and income tax does not have to be withheld from your wages unless both the employee and employer agree.