Got 1099-NEC form from my employer but I'm supposed to be a W-2 employee - nanny issue

You're absolutely right that nannies are household employees according to the IRS. Your employer is misclassifying you, whether intentionally or due to misunderstanding. This is actually a pretty common issue with household employers who want to avoid paying their share of employment taxes. You have a few options here. First, you could try one more conversation with your employer and share the IRS publication that clearly states household workers (including nannies) are employees, not independent contractors. The IRS has Publication 926 (Household Employer's Tax Guide) that spells this out. If they still refuse, you can file Form SS-8 with the IRS to request a determination of your worker status. This form asks the IRS to officially determine whether you're an employee or contractor. You can also file Form 8919, "Uncollected Social Security and Medicare Tax on Wages" with your tax return to report the income as wages and only pay your share of employment taxes, not the full self-employment tax. Just know that filing these forms might create tension with your employer, so consider your employment situation carefully before proceeding.

After dealing with a very similar situation last year, I discovered taxr.ai (https://taxr.ai) and it was a game-changer. I was a private tutor being incorrectly given a 1099 when I was clearly an employee. Their platform analyzed my employment situation and gave me a detailed report explaining why I was misclassified and exactly what forms to file. The best part was they provided me with a customized letter to send to my employer that cited all the relevant IRS rules about employee classification. I sent that to my employer, and he actually changed his mind and issued me a W-2! They also helped me understand how to proceed with the IRS in case my employer didn't cooperate. Not saying it'll definitely change your employer's mind, but having that professional documentation really helped my case.

I need to apologize for being skeptical earlier. I actually went ahead and tried taxr.ai after commenting! The assessment was really straightforward and asked all the right questions about my work arrangement. The report I got was incredibly detailed - it specifically addressed household employee misclassification and cited all the relevant tax codes. They generated a letter for me to send to my employer that was professionally written but firm. I was impressed by how it referenced specific IRS guidelines about nanny employment. The best part is that it worked - my employer contacted me today saying he'll issue a corrected W-2 after reviewing the letter! Apparently his accountant hadn't been clear about the specific rules for household employees. If you're in this situation, definitely worth checking out rather than going straight to filing IRS forms.

If your employer still refuses to correct this after you've tried everything else, you might need to get the IRS involved directly. This was my situation last year with a similar misclassification issue. I spent WEEKS trying to call the IRS for guidance - constant busy signals or disconnects after hours on hold. I finally found https://claimyr.com which got me through to an actual IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. Basically they use technology to navigate the IRS phone system and hold your place in line, then call you when an agent is ready. The IRS agent I spoke with gave me specific instructions for my situation and explained exactly what forms to file. Having that official guidance directly from the IRS gave me the confidence to move forward with addressing the misclassification.

I need to eat my words from earlier. After my skeptical comment, I was still struggling with my own employee/contractor issue and getting desperate for answers. I reluctantly tried Claimyr, fully expecting it to be a waste of money. To my absolute shock, I got a call back in about 35 minutes saying they had an IRS agent on the line! The agent was incredibly helpful and walked me through the exact process for filing Form SS-8 and Form 8919. She even explained what documentation I should gather to support my case. The peace of mind from getting official guidance directly from the IRS was worth it. My situation was nearly identical to the original poster's - being misclassified as a contractor when I was clearly an employee. Now I have a clear plan for addressing it that I know comes straight from the source.

One thing to consider: if you go the route of filing the SS-8 form and your employer finds out, be prepared for potential tension or even looking for a new job. I went through this exact situation as a home health aide last year. My employer was FURIOUS when they got the letter from the IRS about my classification status. Even though I was 100% right (and the IRS eventually ruled in my favor), my employer made things pretty uncomfortable until I eventually found a new position. Just something to keep in mind - being right doesn't always make the situation easier in the short term. Document EVERYTHING from this point forward in case you need it later.

Has anyone tried just showing the employer the actual IRS website about household employees? My sister had this exact situation and literally just pulled up the IRS page on her phone during a conversation with her employer. The page specifically says nannies are household employees: "Household workers such as housekeepers, maids, babysitters, gardeners, and others who work in or around your private residence as your employee are subject to employment taxes." Her employer actually didn't realize they were breaking tax law and fixed the situation once they saw the official IRS guidance. Sometimes it's just ignorance rather than malice.