Another household employer here! We've had a nanny for 3 years now. One thing to consider is your nanny's perspective in all this. If you don't withhold, your nanny will be hit with a huge tax bill at the end of the year (self-employment tax is about 15.3%). Most professional nannies now expect proper payroll and will actually appreciate you doing things right. It makes it easier for them to qualify for apartments, car loans, etc. We found it helped us attract and keep a better nanny by being a legit employer.

I'm also a first-time household employer and went through this exact same confusion last year! One thing that really helped me was understanding that you have two separate obligations: employment taxes (which you MUST handle) and income tax withholding (which is optional but recommended). Here's what I learned the hard way: **Required:** - Social Security and Medicare taxes (you pay half, nanny pays half - total 15.3%) - Federal unemployment tax (FUTA) - you pay this, not the nanny - State unemployment tax (varies by state) - Workers' compensation insurance (check your state requirements) **Optional but helpful:** - Federal income tax withholding (makes life easier for your nanny) The key insight for me was that even if you don't withhold income taxes, you still have to handle all the employment taxes. You can't just "let her handle everything" - that would make her a contractor, not an employee, which has different (and stricter) IRS tests. I ended up using a payroll service after trying to DIY the first quarter and making mistakes. The peace of mind was worth the monthly cost, especially since penalties for getting household employment taxes wrong can be steep. Also, keep detailed records of everything - wages paid, dates, hours worked. You'll need this for Schedule H and your nanny's W-2.

Not exactly a tax deduction, but have you asked the school about discounts? Many private schools offer tuition reduction through: - Multi-child discounts if you have multiple kids enrolled - Prepayment discounts if you pay the full year upfront - Parent volunteer credits for helping at events or on committees - Financial aid that isn't just for low-income families but also middle-income families with high expenses We saved almost 15% on my son's tuition through a combination of these approaches at his private school. Worth asking about!

I've been dealing with the same issue and wanted to share what I've learned through research and talking to other parents. Unfortunately, the federal tax benefits for private K-12 education are quite limited - the 529 plan withdrawal you're already using is really one of the main options. However, I'd suggest checking a few additional angles: 1. **State-specific benefits**: Some states offer education tax credits or deductions that apply to private school expenses. For example, states like Arizona, Florida, and Pennsylvania have various school choice tax credit programs. 2. **Medical expense angle**: If your child has documented learning differences and the private school is specifically chosen to address those needs, some portion of tuition might qualify as a medical expense deduction (though you'd need to itemize and meet the high threshold). 3. **Employer benefits**: Check if your employer offers a Dependent Care FSA for before/after school care programs, or an education assistance program that might cover some costs. 4. **HSA funds**: If your child has any therapy or special services at school related to health conditions, those portions might be HSA-eligible. The reality is that the tax code doesn't provide much relief for private education costs compared to college expenses, but it's worth exploring every legitimate avenue available to your specific situation.

Don't forget about nonbusiness income! When I first did our state apportionment, I focused only on the three factors for business income and completely missed that nonbusiness income has totally different allocation rules. Things like interest income, rental income from properties not part of your regular business, and gain/loss from selling business assets often get allocated 100% to specific states rather than being apportioned. This was a painful lesson when we had a significant capital gain that year.

As someone who just went through this exact process last year, I want to emphasize the importance of getting your nexus analysis right BEFORE you start building your apportionment file. We made the mistake of creating apportionment calculations for states where we thought we had nexus, only to discover later that some states had different thresholds or that certain employee activities didn't actually create nexus. Start with a comprehensive nexus study considering: - Physical presence (employees, property, offices) - Economic nexus thresholds (sales amounts) - Click-through nexus or affiliate nexus rules - Payroll nexus thresholds Once you know exactly which states you need to file in, THEN build your apportionment methodology. Also, consider whether you need to register for nexus in any new states before your first filing - some states require registration within 30 days of establishing nexus. The remote work situation adds complexity because employee work locations can create nexus even if you don't have a physical office there. Document everything well because if you get audited, they'll want to see your methodology and supporting records.

Compared to previous tax seasons, this year's processing seems to be running on a tighter schedule. If you filed electronically and your return was accepted before February 15th, most PATH Act returns are now being processed in batches that finish on Wednesdays and Fridays. Unlike the 2022 season when delays stretched into April, or even last year when many waited until mid-March, the current cycle is moving more efficiently. I'd strongly recommend checking your transcript again tomorrow morning - if you don't see movement by then, you'll likely be in next week's processing batch.

I'm a PATH Act filer too and have been anxiously checking my transcript daily! From my experience last year, the transcript usually updates first, but I've heard of a few cases where people got their deposit a day or so before the 846 code showed up. It's definitely not the norm though. If you're checking WMR (Where's My Refund), that sometimes updates faster than the transcript system. Also worth noting that if you're banking with a credit union or smaller bank, they might process deposits differently than the big banks. Have you tried calling the IRS taxpayer advocate line? Sometimes they can give you more specific info about where your return stands in the queue, especially if you're past the normal processing timeframes.

So i had the same issue and i check my property tax statement direct from my county and it turns out some of the "other taxes" were actually school district taxes which ARE deductible!!! but some were for a local improvement district which AREN'T deductible. tax stuff is so confusing!!!

Great thread! Just wanted to add that if you're unsure about what qualifies as deductible property tax, the IRS has a helpful publication (Publication 530) that specifically covers this. The key test is whether the tax is based on the assessed value of your property and benefits the general public (like funding schools, police, fire departments, etc.). Things like special assessments for specific improvements to your neighborhood (new sidewalks, street lighting) typically aren't deductible because they increase your property value rather than benefit the general public. Also, if you've been combining these amounts for previous years and it turns out some of the "other taxes" weren't deductible, you might want to calculate whether it's worth filing amended returns. The statute of limitations is generally 3 years, so you could still amend 2021, 2022, and 2023 if the tax savings would be significant.