You paid someone to care for your parent (or grandparent, or spouse) at home. Tax season rolls around and you realize: do I need to give them a W-2?
If you paid them $3,000 or more in 2026, the answer is yes. And the deadline is January 31, 2027.
This guide covers everything — what goes in each box, how to handle common situations, and what to do if you missed a prior year. (For a broader overview of the W-2 process, see our complete W-2 guide for household employees.)
When Is a W-2 Required?
The rule is simple. If you paid a single household caregiver $3,000 or more during the calendar year, you must issue them a W-2.
| Total Paid in 2026 | W-2 Required? |
|---|---|
| Under $3,000 | No |
| $3,000 or more | Yes |
This is per caregiver. If you paid one caregiver $2,500 and another $3,500, only the second one gets a W-2.
And it doesn't matter whether the caregiver works full-time or part-time. If a weekend caregiver earned $3,000 over the course of the year, they need a W-2.
What Information Goes on the W-2
The W-2 has quite a few boxes, but most household employers only need to worry about a handful. A walkthrough of the ones that matter.
Identifying information (top section)
Before the numbered boxes, you'll fill in:
| Field | What to Enter |
|---|---|
| Employee's name and SSN | Your caregiver's full legal name and Social Security number |
| Employer's name, address, and EIN | Your name, home address, and Employer Identification Number |
| Employee's address | Your caregiver's home address |
You'll need your caregiver's Social Security number to complete the W-2. If you collected a W-4 and I-9 when they started, you already have it. If not, ask — they're required to provide it.
Don't have an EIN yet? Apply for free at irs.gov/ein. See our EIN guide for step-by-step instructions.
Box 1: Wages, tips, other compensation
This is the total gross wages you paid the caregiver during the year — before any withholding. Include all cash wages. If you provided non-cash benefits (like free meals or lodging as part of the compensation agreement), their fair market value may also go here.
Example: You paid your caregiver $500/week for 50 weeks. Box 1 = $25,000.
Box 2: Federal income tax withheld
The amount of federal income tax you withheld from the caregiver's paychecks during the year.
Federal income tax withholding is optional for household employers. If your caregiver submitted a W-4 and asked you to withhold, enter that amount. If they didn't request withholding (or if you agreed not to withhold), enter $0.
A $0 in Box 2 is perfectly normal for household employees. Your caregiver will handle their own income tax when they file their return.
Box 3: Social Security wages
The total wages subject to Social Security tax. For most household employees, this equals Box 1 — unless the caregiver earned above the Social Security wage base ($184,500 in 2026), which is uncommon for in-home care.
Box 4: Social Security tax withheld
The employee's share of Social Security tax: 6.2% of Box 3.
Example: Box 3 = $25,000. Box 4 = $25,000 × 0.062 = $1,550.
This amount should have been withheld from the caregiver's pay throughout the year. If you paid the caregiver's share yourself (some families cover both the employer and employee portions), you still report it here — and the amount you paid on their behalf gets added to Box 1 as additional wages.
Box 5: Medicare wages and tips
Total wages subject to Medicare tax. For household employees, this is almost always identical to Box 1. There's no wage cap on Medicare.
Box 6: Medicare tax withheld
The employee's share of Medicare tax: 1.45% of Box 5.
Example: Box 5 = $25,000. Box 6 = $25,000 × 0.0145 = $362.50.
Boxes 15-17: State information
If you withheld state income tax, fill these in:
| Box | What to Enter |
|---|---|
| Box 15 | Your state abbreviation and state employer ID number |
| Box 16 | State wages (usually same as Box 1) |
| Box 17 | State income tax withheld |
If your state has no income tax (Texas, Florida, Washington, Nevada, Wyoming, South Dakota, Alaska, Tennessee, New Hampshire), leave these blank. Check your state's requirements →
Boxes you can probably skip
- Box 7 (Social Security tips): Leave blank — household employees don't typically receive tips
- Box 8 (Allocated tips): Leave blank
- Boxes 9-10: Not used
- Box 11 (Nonqualified plans): Leave blank
- Box 12 (Codes): Usually blank for household employees. Starting with 2026 W-2s, use code TT for qualified overtime if applicable.
- Box 13 (Checkboxes): Usually all unchecked
- Box 14 (Other): Optional — can note state disability insurance or local taxes if applicable
A Complete Example
Maria is a home health aide caring for your elderly father. She works 25 hours/week at $20/hour in Illinois. You withheld FICA taxes but not federal or state income tax (at her request).
Annual wages: 25 hrs × $20 × 52 weeks = $26,000
| Box | Amount | How Calculated |
|---|---|---|
| 1 - Wages | $26,000 | Total gross pay |
| 2 - Federal income tax | $0 | Not withheld (caregiver's choice) |
| 3 - Social Security wages | $26,000 | Same as Box 1 |
| 4 - Social Security tax withheld | $1,612.00 | $26,000 × 6.2% |
| 5 - Medicare wages | $26,000 | Same as Box 1 |
| 6 - Medicare tax withheld | $377.00 | $26,000 × 1.45% |
| 15 - State/Employer's state ID | IL / Your IL ID | |
| 16 - State wages | $26,000 | Same as Box 1 |
| 17 - State income tax | $0 | Not withheld |
Maria receives this W-2 by January 31. She uses it to file her personal tax return and will owe federal and state income tax on the $26,000.
Your employer taxes (which don't go on the W-2 — they go on your Schedule H):
| Your Tax | Amount |
|---|---|
| Employer Social Security (6.2%) | $1,612.00 |
| Employer Medicare (1.45%) | $377.00 |
| FUTA (0.6% on first $7,000) | $42.00 |
| IL SUTA (~2.95% on first $13,590) | ~$400.91 |
| Your total employer taxes | ~$2,431.91 |
What If You Didn't Withhold Income Tax?
This is the most common situation for household employers — and it's perfectly fine.
Federal income tax withholding is optional for household employees. Many families and caregivers agree not to withhold, because it simplifies payroll (you just withhold the mandatory FICA taxes) and the caregiver handles income tax themselves.
Your W-2 is still required. Boxes 2 and 17 simply show $0. The caregiver uses the W-2 to report their income and pay any taxes owed when they file.
FICA withholding (Social Security and Medicare) is not optional, though. If you paid above the $3,000 threshold, those taxes were mandatory. If you didn't withhold them during the year, you're responsible for the employee's share — and you'll owe it when you file your Schedule H.
What If You Started Mid-Year?
Say you hired a caregiver in July. The W-2 covers wages from their start date through December 31 — however many months they worked.
If you hired someone in September and paid them $800/week through December (roughly 17 weeks = $13,600), that's above the $3,000 threshold. W-2 required.
If you hired someone in November and paid them $2,500 through year-end, you're under the threshold. No W-2 needed for that year — though if they continue into the next year and cross $3,000, you'll issue one then.
What If Multiple Family Members Paid the Same Caregiver?
This happens when siblings share the cost of a parent's care. Maybe your brother pays the caregiver on Mondays and Tuesdays, and you cover Wednesday through Friday.
In most cases, one person should be the employer. That person gets the EIN, runs payroll, handles the W-2, and files Schedule H. The other sibling reimburses them.
If both siblings independently employed the same caregiver (each with their own EIN, each paying directly), then each employer issues a separate W-2 for the wages they paid. But this creates unnecessary complexity — consolidating under one employer is simpler for everyone. See our caregiver taxes guide for more on structuring these arrangements.
What If the Caregiver Worked for Multiple Families?
Some caregivers work for several families — mornings at one home, evenings at another. Each family is a separate employer. Each employer that paid $3,000+ issues their own W-2.
The caregiver receives multiple W-2s and reports the total income on their tax return. Your W-2 only reflects what you paid — you don't need to know or report what other families paid.
I Didn't Issue a W-2 Last Year — What Now?
If you should have issued a W-2 but didn't, the right move is to fix it now rather than hoping nobody notices.
For a recent miss (one year ago):
- Prepare the W-2 for the year you missed
- File it with the SSA — late is better than never
- Give the caregiver their copy
- File an amended Schedule H if you didn't file one, or correct it if you did
- Pay any taxes owed, plus interest
For older years (two or more years ago):
The same steps apply, but you may want to consult a tax professional. Penalties accumulate, and a professional can help you navigate the process and potentially reduce penalties.
The penalty scale for late W-2s:
| How Late | Penalty Per Form |
|---|---|
| Within 30 days | $60 |
| 31 days to August 1 | $130 |
| After August 1 or not filed | $340 |
These penalties are per form, not per employee. If you owe one W-2, it's one penalty. The maximum penalty for small employers (under $5 million in gross receipts) is capped at $664,500 — which you'll never come close to with household employment.
Our back pay guide covers the full process for getting current on missed taxes.
How to File the W-2
You need to deliver copies to two places: your caregiver and the Social Security Administration.
Give copies to your caregiver
Your caregiver gets Copy B (for their federal return), Copy C (for their records), and Copy 2 (for their state return). Hand them all three at once — they'll sort out which to use.
Deadline: January 31.
File Copy A with the SSA
You file Copy A with the Social Security Administration, along with Form W-3 (a transmittal form that summarizes the W-2). Two options:
E-file (recommended): Create a free account at ssa.gov/bso, enter the W-2 information, and submit. Instant confirmation, no postage.
Mail: Use official red-ink W-2 forms (you can't print Copy A on regular paper — the SSA's scanners need the official forms). Mail with Form W-3 to the SSA.
Deadline: January 31.
File with your state (if required)
Most states require you to file Copy 1 with the state tax agency. Some states participate in the Combined Federal/State Filing Program, where filing with the SSA also covers your state filing. Check your state's requirements →
How NannyKeeper Makes This Easier
If you tracked payroll through NannyKeeper during the year, your caregiver's W-2 is already generated — every box calculated automatically from actual pay records. No manual math, no looking up tax rates, no second-guessing whether Box 3 should match Box 1.
Log in, review the W-2, download the PDF, and give it to your caregiver. The whole process takes about 5 minutes.
Start tracking payroll for free → — W-2 generation is included with all paid plans (from $10/mo).
Common Mistakes to Avoid
Wrong Social Security number. Triple-check the caregiver's SSN. A wrong number causes SSA notices and delays your caregiver's tax filing.
Forgetting the state boxes. If your state has income tax, Boxes 15-17 need to be filled in — even if you didn't withhold state tax. Enter $0 for Box 17 if you didn't withhold.
Math errors on FICA boxes. Box 4 should be exactly 6.2% of Box 3. Box 6 should be exactly 1.45% of Box 5. If these don't match, the SSA will flag it. Use our calculator to double-check.
Missing the deadline. January 31 is firm. Mark it on your calendar. Set a reminder for January 15 to start preparing.
Confusing "no withholding" with "no W-2." Even if you withheld zero income tax, the W-2 is still required if wages exceeded $3,000. Boxes 2 and 17 just show $0.
FAQ
Does my caregiver need the W-2 to file their taxes?
Yes. Your caregiver uses the W-2 to report the income on their personal tax return. Without it, they'd have to reconstruct their earnings from memory or their own records — and if the numbers don't match what the SSA has on file, it triggers notices. Getting them the W-2 on time is the considerate thing to do.
What if my caregiver doesn't want a W-2?
It doesn't matter. The W-2 is a legal requirement — you must issue it if wages exceeded the threshold. Some caregivers prefer cash arrangements to avoid reporting income, but that puts both of you at risk. The IRS receives a copy, and unreported income can trigger audits for the caregiver.
Can I give my caregiver a 1099 instead of a W-2?
No. A 1099-NEC is for independent contractors. If the caregiver works in your home on a schedule you set, they're a household employee — not a contractor. Issuing a 1099 instead of a W-2 is misclassification. See our employee vs. contractor guide.
What if the caregiver was paid through a Medicaid program?
If a fiscal intermediary handled payroll through a Medicaid waiver program (like CDPAP), that intermediary issues the W-2 — not you. But if you paid the caregiver privately, out of your own pocket, you're the employer and you issue the W-2. Check with the fiscal intermediary or your state Medicaid office if you're unsure who handles what.
I paid my parent to watch my kids. Do they get a W-2?
If you paid your parent $3,000 or more in 2026, yes — they get a W-2 just like any other household employee. The family caregiver tax rules affect which employment taxes you owe (FUTA is typically exempt), but the W-2 requirement is the same. See our guide to hiring a parent as a caregiver for the full breakdown.
See what you'll owe
Use our free calculator to estimate your nanny tax costs for 2026.