Don't forget about the child and dependent care tax credit! If you're paying a nanny properly (on the books), you can claim this credit which can be worth up to $4,000 for one child or $8,000 for two or more children for 2025. This can offset a good chunk of the extra costs of paying legally vs under the table.

Great question! I went through this exact same situation in Jacksonville last year. Definitely pay your nanny as a household employee, not through the LLC - that's the legally correct way and avoids potential complications down the road. A few practical tips from my experience: 1. Set up a separate checking account just for nanny payments - makes tracking so much easier come tax time 2. Keep meticulous records of hours worked, payments made, and any reimbursements 3. Consider using a service like HomePay or GTM right from the start - I tried doing it myself initially and it was more complex than expected Also, since you're in Florida, make sure you register for state unemployment insurance within 30 days of paying your nanny more than $1,000 in any quarter. Florida's rate is relatively low but it's required. One last thing - have a written work agreement that clearly outlines duties, schedule, pay rate, and house rules. It protects both you and your nanny and makes the whole employment relationship smoother.

One thing nobody mentioned - if this is your first time missing tax payments, you might qualify for the IRS First Time Penalty Abatement program! It won't eliminate what you owe, but could wipe out the failure-to-pay penalties if you've had a clean tax record for the past 3 years. You have to ask for it specifically though - they don't automatically give it to you. Just another option to help reduce the total amount.

I went through a very similar situation a couple years ago - owed about $3,200 on 1099 income and was completely panicking. Here's what I learned that might help: First, definitely file your taxes on time even if you can't pay. The penalty for not filing is 5% per month (up to 25%) while the penalty for not paying is only 0.5% per month. Big difference! Second, don't overlook business deductions. As a freelancer, you can deduct a lot more than you might think - home office expenses, equipment, software, phone/internet, mileage, training costs, etc. I ended up reducing my tax bill by almost $800 just by claiming legitimate business expenses I hadn't thought of. Third, the IRS payment plans are pretty reasonable. I got on a plan for $85/month and the whole process was much less scary than I expected. You can apply online after you file, and if you owe less than $50,000 it's usually auto-approved. The move between states does complicate things a bit, but since you moved from California to Texas (no state income tax), you'll probably just need to file a part-year California return. Don't let the complexity paralyze you - just file and deal with any corrections later if needed. You've got options and this is definitely manageable!

Has anyone else noticed that the IRS website seems to work better at certain times of day? I had a similar issue last month, and I found that logging in very early in the morning (like 5-6 AM) sometimes showed my balance when it wouldn't show it during normal daytime hours. Might be worth trying if you haven't already.

I've been dealing with IRS payment plan issues for years, and what you're experiencing is unfortunately very common. The IRS systems are notoriously slow to update, especially when there are multiple processes happening simultaneously (like a payment plan application while you still have an outstanding balance). A few things that might help while you're waiting: 1) Keep trying to log in at different times - the system really does work better during off-peak hours, usually early morning or late evening. 2) Make sure you're using the correct login credentials. Sometimes people create multiple IRS accounts accidentally and end up logging into the wrong one. 3) If you submitted your payment plan application online, there should have been a confirmation number or reference ID. Keep that handy - you'll need it when you eventually get through to someone. 4) Even if your payment plan isn't officially approved yet, the IRS usually won't penalize you for late payments if you can show you applied in good faith before the deadline. But definitely document everything. The 3-week mark is still within normal processing time, though I know it's stressful not knowing. Most people I know who've been through this process say it took 4-6 weeks to get full confirmation and see their accounts update properly.

Has anyone dealt with the reverse problem? The IRS still thinks my grandmother is alive even though she passed away 2 years ago. We've sent death certificates multiple times but they keep sending her notices about unfiled returns.

This exact thing happened to my brother-in-law last year! The IRS had him marked as deceased due to a clerical error when his father passed away - somehow they mixed up the Social Security numbers during the estate processing. Here's what worked for us: First, don't panic about filing your joint return. You can request an automatic 6-month extension (Form 4868) while you sort this out, which buys you time until October. The key is to tackle both the Social Security Administration AND the IRS simultaneously, not just one at a time. Have your husband go to the SSA office with his birth certificate, current driver's license, and Social Security card. Ask them specifically for a "Statement of Earnings and Benefits" printout - this will show his account is active and he's alive. While you're doing that, call the IRS Practitioner Priority Service line at 1-866-860-4259. It's technically for tax professionals, but they'll help with urgent issues like this. Tell them it's an "erroneous death indicator" case and you need it expedited because it's affecting your ability to file your current year return. Keep detailed records of every call, including agent names and reference numbers. This whole process took us about 3 weeks to fully resolve, but it was worth doing it right the first time.

Also worth noting that Form 8843 is ONLY an informational form. It doesn't go with your tax return if you're filing one - it's submitted separately. And there's no payment associated with it. The deadline is still April 15, 2024 for the 2023 tax year though.

Just wanted to add one more important point - make sure you keep copies of all your documentation! Since you're crossing the border frequently from Canada, I'd recommend keeping a simple spreadsheet or calendar tracking your entries and exits. Even if you don't have perfect records now, start documenting going forward. Also, if you're unsure about any specific dates, you can request your I-94 travel history from CBP's website (i94.cbp.dhs.gov). This will show your official entries and exits which can help fill in gaps in your records. As a Canadian, some of your crossings might not show up if you didn't go through formal inspection, but it's still worth checking. The key thing is to be as accurate as possible on Form 8843 since it establishes your tax residency status. Good luck with your filing!