Taxpayer Identification Numbers:
If you are asked for taxpayer identification numbers, you should use the following:
·
Your au pair's social security number or ITIN, in reference to payments made directly to your au pair ·
94-3382054
AuPairCare’s federal tax ID number in reference to program fees paid to AuPairCare: 1) For the Host Family:
Child and Dependent Care Tax Credit
As long as a Host Family needed the au pair’s child care services in order to work or look for
employment, the stipends paid to au pairs, the cost of room and board, and the program fees
paid to AuPairCare are all eligible under the Child and Dependent Care Tax Credit. A fee paid to AuPairCare is eligible only once the au pair begins to provide services. However,
amounts paid to AuPairCare, and that are later forfeited, do not qualify. Note that if a Host
Family pays a fee (e.g. the payment due upon matching) in one calendar year, but the au pair
does not begin to provide services until the next year, the fee is eligible in the year during which
the au pair began to provide services. So, a Host Family who matches in December 2009 for a
January 2010 au pair arrival can include the match payment in the expenses for the 2010 tax
year. To file for the credit, your au pair must obtain a Social Security number or ITIN (Individual
Taxpayer Identification Number) from your local branch of the Social Security Administration. Au pairs are given a letter from AuPairCare to assist them in obtaining a Social Security number or ITIN. To claim the credit, you can file Form 1040, Form 1040A or Form 1040-T. Use your au pair’s Social Security number or ITIN as the tax identification number for the childcare provider.
Dependent Care Reimbursement Programs
The eligibility requirements for these programs are identical to those for the tax credit described above. As long as a Host Family needed child care in order to work or look for employment, the stipends paid to au pairs, the cost of room and board, and the program fees paid to AuPairCare are all qualified as a dependent care provider expense under employers’ Dependent Care Reimbursement programs. Contact your employer for specific guidance on this issue.
Reporting for My Au Pair’s Taxes
Host families usually do not need to pay federal unemployment tax (FUTA) for their au pairs,
because most au pairs are considered “non-resident aliens.” However, if the au pair had
previously been in the United States as a student, teacher, trainee, or researcher in F, J, M, or
Q nonimmigrant status
“resident alien” during his/her current stay in the United States. Host families are
withhold taxes unless the au pair (employee) requests that taxes be withheld and the host family
(employer) agrees to do so.
before becoming an au pair, then the au pair might be considered anot required to Responsibility for Au Pair’s Taxes
The
taxes, if applicable. The IRS does not hold the host family responsible for an au pair’s failure to
file a return nor for any unpaid tax bill that may result from a filing. However, your au pair will
need some record of the stipend payments received from you, so please be sure to use the
Stipend Payment Receipt template included at the end of this document (or create your own
receipt to use).
au pair is responsible for declaring her/his own income, submitting a tax return and paying Documentation for My Taxes
For program fees, AuPairCare is happy to provide customized invoicing and payment
documentation upon request via email to
stipend payments to your au pair, AuPairCare recommends that you use the Stipend
Payment Receipt template found in your family room.
CustomerCare@aupaircare.com. For 
2) For Au Pairs:
Because the IRS considers an au pair to be an “employee” of the host family,
required to file U.S. individual income tax returns even though many au pairs will not owe taxes.
Payment Receipt template included at the end of this document (or create your own receipt to
use). If an au pair receives more than $3,650 in weekly stipends during a calendar year (January 1 through December 31), s/he is required to pay income tax with the exception of Social Security and Medicare taxes. Depending on what time of the year the au pair arrives, it is possible that he or she will make below the minimum amount required for taxation in that year. Often, au pairs who are in the United States for less than 4 months in a calendar year do not owe taxes.
au pairs areBy April 15, the au pair should use Form 1040NR-EZ or Form 1040NR to report his/her au pair wages for the previous calendar year. (e.g. on April 15 2011, tax returns are due for wages earned between January 1 and December 31, 2010.) You will need some record of the stipend payments you received from your host family, so please be sure to use the Stipend *Please note the au pair year end completion bonus is not subject to taxation.*
For au pairs who do owe taxes, the amount is usually roughly equal to one to two weeks’
stipend. Au pairs should plan ahead to have these funds available in April when they submit
their tax returns. (Taxes on income earned between January 1 through December 31 are
always due on the following April 15. Long lines at the post office on April 15 to mail tax returns
are an American tradition!) Au pairs who have already left the United States by April 15 may
submit their tax return early before they go, or they can submit it online using a third-party
service.
If an au pair wants the host family to withhold taxes from the weekly stipend, s/he must ask the
host family to do so. Otherwise, the host family will not withhold taxes, and the au pair will need
to have funds available for payment of taxes due, if any, at the end of the year. Au pairs are
not eligible for the Earned Income Tax Credit, the Hope Credit or the Lifetime Learning Credit. An
au pair is not really a "student" in the United States, and therefore is
her au pair wages from gross income under the student article of any U.S. income tax treaty.
**The information above applies to
Unemployment Tax (FUTA) and the au pair may need to pay FICA tax.**
not eligible to exclude his/most au pairs, because most au pairs are considered “nonresident aliens.” However, if the au pair had previously been in the United States as a student, teacher, trainee, or researcher in F, J, M, or Q nonimmigrant status before becoming an au pair, then the au pair might be considered a “resident alien” during his/her current stay in the United States. In this case, the host family and au pair should consult a tax advisor, because the host family may need to withhold Social Security and Medicare taxes and pay Federal 3) Additional Resources:
IRS forms for au pair tax returns:
♦
Form 1040NR-EZ: Nearly all au pairs can use this form to submit tax returns. ·
http://www.irs.gov/pub/irs-pdf/f1040nre.pdf ·
Instructions: http://www.irs.gov/pub/irs-pdf/i1040nre.pdf ♦
Applying for a Social Security Number for J-1 Visa holders: http://www.ssa.gov/pubs/10181.html
♦
Internal Revenue Service: www.irs.gov or 1-800-829-1040 ♦
IRS info about au pairs: http://www.irs.gov/businesses/small/international/article/0,,id=96420,00.html
If you have any questions, please consult directly with the resources listed above so that you
can receive definitive answers regarding your specific situation. AuPairCare is not licensed to
provide official tax advice, so we cannot counsel host families or au pairs regarding program fee and wage inquiries. Tax laws vary from state to state, so we encourage host families and au
pairs to consult with a local professional tax advisor or directly with the Internal Revenue
Service for any specific questions regarding taxation.
We know that the issue of taxes can be confusing regarding the au pair program, so AuPairCare is pleased to provide you with some general guidelines regarding childcare tax issues. We hope this information will provide a resource for you to prepare for a conversation with your own tax advisor or the IRS. Please consult with your personal tax advisor or the IRS for definitive answers regarding your own situation. For your convenience, links to websites with more detailed information and links to key tax forms are included here.
