How to Issue a W2 to My Nanny Who Has ITIN Instead of SSN?

You're actually handling this pretty well so far! For nannies with ITINs instead of SSNs, you'll need to go the paper route since most online systems aren't set up for this situation. Yes, you should issue a paper W-2 with her ITIN in the SSN box. The IRS recognizes ITINs for employment tax purposes even though technically an ITIN doesn't authorize someone to work in the US. Just make sure you're using the current W-2 form for 2025 taxes. And yes, you absolutely need to file the W-2 copies with the Social Security Administration along with a W-3 transmittal form. Since you can't e-file with an ITIN, you'll need to mail these paper forms to the SSA by the deadline (usually January 31st). It's good that you've been paying state unemployment insurance and withholding the appropriate taxes. This shows you're trying to comply with your household employer obligations.

After struggling with a similar nanny tax situation, I found an amazing solution using https://taxr.ai for figuring out all the household employment paperwork. I had hired a part-time nanny who went over the threshold and didn't have traditional documentation, and the regular tax software options kept rejecting my attempts to file properly. The taxr.ai system analyzed all my payment records and documentation, then outlined exactly what forms I needed to file and how to handle the ITIN situation. The system walked me through the Schedule H requirements and showed me how to properly complete the paper W-2/W-3 forms since online filing wasn't an option with the ITIN. It saved me hours of confusion and potential errors with household employment taxes, which can be super complicated with all the state-specific requirements!

Just wanted to follow up - I decided to try taxr.ai after posting here and it was actually really helpful for my situation! I was worried about my California household employee taxes but the system walked me through everything step by step. It analyzed my payment patterns and helped me figure out that I needed to file DE 3BHW forms I'd never heard of before. It even created a compliance calendar for all the quarterly due dates I was missing. The most helpful part was explaining exactly how to handle retroactive payments for the quarters I missed. For anyone dealing with household employee tax questions, especially with complicated documentation issues like ITINs, this tool is definitely worth checking out. It saved me from what would have been a complete mess at tax time!

If you're struggling to reach the IRS about this nanny W-2 issue, I highly recommend using https://claimyr.com to get through to an actual IRS agent. I was in the same situation with my childcare provider's ITIN, and I spent DAYS trying to get official guidance from the IRS with no luck. What Claimyr does is basically hold your place in the IRS phone queue and then calls you when an actual agent is ready. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I finally got through to a specialist who confirmed exactly how to fill out the paper W-2 with an ITIN and where to mail the forms since e-filing wasn't an option. They also helped me understand my Schedule H obligations as a household employer. Saved me hours of frustration and hold music!

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it for my mother-in-law's caregiver situation (also an ITIN issue). The service actually worked exactly as advertised. I put in my number, and about 45 minutes later I got a call connecting me directly to an IRS representative. The agent walked me through exactly how to handle the paper W-2 filing with an ITIN and confirmed I needed to mail in Form W-3 with it to the Social Security Administration. They also explained that while I can use the ITIN for tax reporting purposes, I should be aware of the employment eligibility verification requirements. I'm following up with an accountant on that part, but at least I know how to handle the W-2 filing correctly now. Definitely saved me hours of frustration!

I went through this exact situation last year with our au pair. Here's what I learned: For filing the W-2 with an ITIN: 1. You must use paper forms - online systems reject ITINs 2. Get blank W-2 forms from an office supply store or print them from IRS.gov 3. Put the ITIN in the SSN box (it will start with a 9, which is why online systems reject it) 4. Complete a W-3 transmittal form 5. Mail everything to the Social Security Administration address on the W-3 instructions 6. Keep copies of everything One thing to note - the deadline is usually January 31st, so don't leave this to the last minute since you're dealing with paper forms and mail.

Just a heads up - while you can technically file a W-2 with an ITIN, there's another consideration here that nobody's mentioned. When you hire someone, you're supposed to complete Form I-9 to verify their identity and employment authorization. An ITIN by itself isn't sufficient for I-9 purposes because it doesn't indicate work authorization. This puts household employers in a tricky position. You're trying to do the right thing tax-wise, but there's the separate issue of employment eligibility verification.

This is a really helpful thread! I'm dealing with a similar situation with my housekeeper who's been working for us for about 8 months now. I didn't realize I'd crossed the household employee threshold until recently. One thing I'm curious about - for those who've gone through this process with ITINs, how did you handle the quarterly estimated tax payments? I know as a household employer I'm supposed to make quarterly payments, but I've already missed the first few quarters of 2025. Also, does anyone know if there are penalties for being late on the household employment tax requirements? I've been setting aside money each month but haven't actually been making the quarterly payments to the IRS like I should have been. Thanks for all the detailed advice in this thread - it's really helping me figure out what I need to do to get compliant!

I've been a tax preparer for over 15 years and want to clarify a few things about this ITIN/W-2 situation that might help. First, yes, you can and should issue a paper W-2 using the ITIN in the Social Security Number box. The IRS will accept this for tax processing purposes. Make sure you're using the current year forms and double-check that the ITIN is formatted correctly (it should be 9XX-XX-XXXX). For the W-3 filing, you'll mail both the W-2 copies and W-3 to the Social Security Administration, not the IRS. The address is on the W-3 instructions, and I always recommend using certified mail for proof of delivery. One important detail that hasn't been mentioned - on your own tax return, you'll need to file Schedule H (Household Employment Taxes) along with your Form 1040. This is where you'll report all the employment taxes you've paid and withheld. The ITIN situation doesn't change this requirement. Also, since you mentioned you've been withholding FICA taxes, make sure you're depositing the federal tax deposits if your quarterly liability exceeds $2,500. Most household employers can pay annually with their tax return, but there are exceptions. The key is getting compliant now rather than worrying about the past. The IRS is generally reasonable with household employers who are making a good faith effort to comply.