5 ms·

So, I elect the Democrats, with promise of healthcare reform, free college tuition for my kids and environmentally friendly policies. Instead, I now have to fi

by jmpman 5y ago

So, I elect the Democrats, with promise of healthcare reform, free college tuition for my kids and environmentally friendly policies. Instead, I now have to file a W2 for my new nanny, complicating my taxes and hers. After my nanny takes the standard deduction, they’ll collect minimal additional taxes. A wasteful policy that just increases governmental overreach.

loeg 5y ago
The household employee clarification was in 2015. And nannies are employees. So yeah, you give them a W2 and they pay normal income taxes, like we all do on income we earn. Are you saying there should be a special tax reporting and collecting exemption for domestic workers?
- jmpman 5y ago
  There’s already an exception of up to $2300/year for a nanny tax. Less than that, and you don’t have to file for them. Yes, they should have dramatically increased the nanny tax exemption - ideally up to the standard deduction.
  - loeg 5y ago
    The lower exemption is intended for like, occasional babysitting. A full-time nanny earns more like $40-50k around here; somewhat less elsewhere, but not less than half that. Still -- why should nanny income up to the standard deduction not be reported? Other workers making similar income have their income reported and are responsible for filing and paying taxes.
    - jmpman 5y ago
      My gardener is very likely working illegally, and not paying taxes. My house cleaners are likely not reporting their income for taxes. But the nanny, working part time, making around $10k/year, I have to consider my employee, provide her a W2, submit forms to the IRS. The difference is that I don’t have to consider the gardener or house cleaner as my employees. Also, notice that my nanny’s total income is less than the standard deduction. She’s ultimately paying no taxes, just like my gardener and house cleaner. If the democrats want to increase tax revenue, pass laws that reward people for turning in under reporting of inter-generational wealth transfer - like Trump received. If accountants and lawyers can claim 10% by turning in their customer’s fraudulent tax schemes, the country will collect substantially more than this legislation.
echelon 5y ago
Not to mention this and other policies has made the stock of PayPal, Square, and other fintechs crash 40%, wiping out tons of investors.
type-r 5y ago
Thank god they at least didn't get those other policies passed.

by jmpman 5y ago

loeg 5y ago

The household employee clarification was in 2015. And nannies are employees. So yeah, you give them a W2 and they pay normal income taxes, like we all do on income we earn. Are you saying there should be a special tax reporting and collecting exemption for domestic workers?

jmpman 5y ago
There’s already an exception of up to $2300/year for a nanny tax. Less than that, and you don’t have to file for them. Yes, they should have dramatically increased the nanny tax exemption - ideally up to the standard deduction.
- loeg 5y ago
  The lower exemption is intended for like, occasional babysitting. A full-time nanny earns more like $40-50k around here; somewhat less elsewhere, but not less than half that. Still -- why should nanny income up to the standard deduction not be reported? Other workers making similar income have their income reported and are responsible for filing and paying taxes.
  - jmpman 5y ago
    My gardener is very likely working illegally, and not paying taxes. My house cleaners are likely not reporting their income for taxes. But the nanny, working part time, making around $10k/year, I have to consider my employee, provide her a W2, submit forms to the IRS. The difference is that I don’t have to consider the gardener or house cleaner as my employees. Also, notice that my nanny’s total income is less than the standard deduction. She’s ultimately paying no taxes, just like my gardener and house cleaner. If the democrats want to increase tax revenue, pass laws that reward people for turning in under reporting of inter-generational wealth transfer - like Trump received. If accountants and lawyers can claim 10% by turning in their customer’s fraudulent tax schemes, the country will collect substantially more than this legislation.

echelon 5y ago

Not to mention this and other policies has made the stock of PayPal, Square, and other fintechs crash 40%, wiping out tons of investors.

type-r 5y ago

Thank god they at least didn't get those other policies passed.