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The tax information contained on this website is meant to be general in nature regarding the U.S. income tax requirements of au pairs working in the US on J-1 visas. If you have any questions about your tax obligation beyond what is included here, please speak with a professional tax advisor or Certified Public Accountant. Please note that PROaupair, our staff, and Area Directors are not able to provide any additional guidance or tax advice.
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PROaupair encourages you to visit the Au Pair page of the IRS website for the most detailed information:
http://www.irs.gov/Individuals/International-Taxpayers/Au-Pairs
Here are a few Frequently Asked Questions about Taxes
1. Is withholding of Social Security tax required on the weekly stipend paid to my au pair? No. The Internal Revenue Code states "Services performed by a non-resident-alien while temporarily in the United States as a non-resident under subparagraph (J) of Section 101(a)(15) of the Immigration and Nationality Act are excluded from coverage under the Social Security Program if the services are performed to carry out the purpose for which the non-resident alien was admitted to the United States."
2. Are the weekly stipend payments paid to my au pair taxable and is Federal withholding required? While the weekly stipend paid to the au pair is not subject to Social Security and Medicare taxes, it is taxable to the au pair as wages. Federal withholding is not required unless the "employee" (Au Pair) asks the "employer" (Host Family) to withhold Federal income tax and the "employer" agrees to do so. Any withholding action must be mutually agreed to.
3. Do I need to issue a W-2 form to our au pair? No. Because au pair stipend is paid for domestic service in a private home, stipend payments are not subject to mandatory U.S. income tax withholding and reporting on Forms 941 (PDF) and W-2. However, au pair stipend payments are includible in the gross income of the recipients, and au pairs are required to file U.S. individual income tax returns. Most au pairs will file a 1040NR EZ.
4. Does the weekly stipend represent a qualifying childcare expense to the host family? Yes, PROaupair believes that it does; however, host families are advised to verify their particular situation with their tax advisor. To claim the Child and Dependent Care Tax Credit for the au pair stipend, the host family will need to provide the au pair’s social security number. PROaupair recommends you collect your au pair’s Social Security information immediately upon receipt and maintain it for your records. Because PROaupair is not the au pair’s employer we do not have the legal authority to collect this information.
5. Does the program fee paid by the host family to PROaupair qualify as a child-care expense? PROaupair recommends host families discuss this issue with their tax advisor and obtain an opinion. Federal law prohibits PROaupair from giving any tax filing advice.
6. What is PROaupair’s tax ID number? PROaupair’s Federal Tax ID number is 51-0677755
7. Is Schedule H (Form 1040) required to be filed by the host family? Since payments to the au pair are not considered wages for the purpose of Social Security Taxes, Medicare Taxes or Federal Unemployment Taxes, and since the host family is not required to withhold Federal Income Tax, Schedule H form is not required.
8. Am I required to purchase Workmen’s Compensation Insurance for my au pair? While most host families decide not to purchase Workmen’s Compensation Insurance and the policies of the U.S. Department of State and PROaupair does not make the purchase of such a policy a requirement of program participation, the answer to this question depends on the laws of your state. PROaupair recommends that you direct this question to your insurance advisor and/or attorney.
9. How does my professional au pair file a tax return? Apex PROaupair provides helpful resources for au pairs about how to take care of filing their taxes. Visit our Au Pair Tax Resource page.
