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Host Family Dependent Expenses and Credits and Taxes (How To)

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TitleHost Family Dependent Expenses and Credits and Taxes (How To)
SummaryGeneral information for Child and Dependent Expenses and Credits related to Au Pair child care and taxes.
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Multimedia
taxes

Au Pair Taxes & Tax Credits for Families
(for the 2021 Tax Season)



 
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Your Au Pair's Tax Responsibility
Au Pair taxes are different than Host Family taxes.  An Au Pair's nonresident status and lack of withholdings means they use different forms and often owe money.  Au Pairs are required to file individual, nonresident (some Au Pairs may classify differently) tax returns and often must pay Federal taxes.  State taxes vary by state.  To ensure accurate tax filing for this unique “employment” situation, we encourage Families and Au Pairs to work with Sprintax for filing Au Pair taxes.

As the Host Family you do not withhold taxes nor do you issue a W2 to your Au Pair.  Unlike a live-in nanny or other domestic employee, withholding taxes (federal, state, social security, etc) is not applicable to an Au Pair's stipend. 

Learn more about Au Pair Taxes = Au Pair Taxes (How To)
Learn more about Sprintax.



Au Pair Expenses and Child and Dependent Tax Credit
Yes, your Au Pair expenses are eligible under the Child and Dependent Tax Credit and may include:
  • Agency Fees paid to Go Au Pair
  • Stipend paid to the Au Pair
  • Transportation expenses related to the Au Pair caring for your children (private car or public) 
  • Meals and lodging for the Au Pair
Expenses are counted in the calendar year they are paid with the exception of Go Au Pair Agency Fees.  Go Au Pair agency fees are paid before Au Pair arrival but for tax purposes should be counted in the calendar year that care was received, we suggest the Au Pair’s arrival date.  For example, fees paid in November 2019 where the Au Pair arrives January 2020 should be eligible for the tax credit in the 2020 tax year.

The Family must qualify for this credit as defined in publication 503.  Review and provide the following documentation to your tax professional to confirm.
Go Au Pair can assist with evidence of Agency Fee expenses only.  Use the following information:
 
Company NameGo Au Pair Operations, LLC
Address151 E 6100, Ste 200
Murray, UT 84107
Tax Id No.20-0946932
Email Requestsacct2@goaupair.com

To receive documentation of agency fees please email our accounting department at acct2@goaupair.com and include your full name and the Au Pair’s name.



Dependent Care Reimbursement Programs (Flex Spending Accounts or FSA)
Your company’s Flex Spending Accounts are usually identical or similar to those from the IRS Child and Dependent Care Tax Credit. You will need to determine the exact rules for your FSA. Please note that we think expenses paid for using your FSA funds would not also be eligible for the IRS Child and Dependent Care Tax Credit.

If you need to provide more information to your company regarding the program details, stipend paid to Au Pair, related expenses and/or the education contribution paid to Au Pair, please contact your Placement Coordinator for a signed letter on Go Au Pair letterhead with this information.

Go Au Pair is not licensed to provide official tax advice. Any information or comments contained in this article are merely suggestions or recommended topics to discuss with a professional Tax Advisor or IRS.  As tax laws are continually being amended, and are sometimes too complex for non-tax professional persons to instruct on, we encourage Host Families and Au Pairs to consult a tax professional, such as Sprintax (for Au Pair taxes), or directly contact the IRS for definitive answers regarding your specific situation.
 
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