Filing Nanny Taxes 2026: W-2 + Schedule H Guide

You paid a household employee in 2026. Now it's time to wrap the year and file your federal and state employment taxes. The good news: household employer filings are more contained than business payroll. One W-2 per employee, one Schedule H with your 1040, plus whatever your state needs.

This guide walks you through every filing, the exact 2027 deadlines, the new 2026 reporting requirement (OBBBA Code TT), and the penalty tiers if you fall behind. Last reviewed May 11, 2026 against IRS Publication 926, Form W-2 Instructions for 2026, and the SSA filing deadline schedule.

First time dealing with household employer taxes? Start with our complete nanny tax guide.

Your 2026 Filing Checklist

The W-2 deadline shifts from January 31 to February 1, 2027 because January 31, 2027 falls on a Sunday (SSA filing deadlines).

Step 1: Gather Your Records

Before you start, pull together:

• Total cash wages paid to each household employee in 2026
• Social Security and Medicare taxes you withheld (employee share)
• Federal income tax you withheld (if any)
• State income tax withheld (if any)
• Any overtime premium paid (needed for the new OBBBA Code TT box)
• Your EIN
• Each employee's Social Security number and current address
• Quarterly SUTA payment confirmations from your state

If you used NannyKeeper in 2026, log in and export your year-end summary. Every number above is already calculated.

Step 2: Prepare the W-2

Every household employee paid $3,000 or more in cash wages during 2026 needs a W-2 (per IRS Publication 926). Here's what goes in each box:

New for 2026: Box 12 Code TT (OBBBA)

The One Big Beautiful Bill Act (OBBBA) introduced a federal income tax deduction for qualified overtime, and it's reported on the W-2 in Box 12 with code TT. This is mandatory for the 2026 W-2, not optional.

You only report the premium portion of overtime, not the full overtime wage. For an FLSA-covered nanny earning $25/hour straight time and $37.50 at time-and-a-half, the premium is $12.50/hour (the half above straight time).

Live-in nannies who are FLSA-exempt from overtime don't get Code TT.

See our W-2 filing guide for 2026 wages for box-by-box detail on Code TT and other 2026 changes.

Distributing the Copies

Each W-2 has multiple copies. You'll distribute them like this:

• Copy A → Social Security Administration (you file this)
• Copy B → Employee (for their federal return)
• Copy C → Employee (for their records)
• Copy D → Your records (keep at least 4 years)
• Copy 1 → State tax agency (if your state requires it)
• Copy 2 → Employee (for their state return)

Step 3: File the W-2 with Social Security

Copy A goes to the SSA, not the IRS. You have two filing methods:

Method A: E-file via BSO (Recommended)

1. Create a free account at SSA Business Services Online (BSO)
2. Use the W-2/W-3 Online wizard (for small filers, up to 50 forms) or upload an EFW2 file
3. Submit and download your confirmation

E-filing is free, gives you instant confirmation, and avoids the paper-form requirement. The SSA strongly prefers e-filing for all employers regardless of size.

Method B: Mail Paper Forms

If you file on paper:

• You must use official red-ink Copy A forms ordered free from the IRS. Photocopies, printer copies, or downloads will not be accepted by SSA scanners.
• Include Form W-3 (the transmittal summary). One W-3 covers all your W-2s for the year.
• Mail to the SSA processing center; the address varies by your state of residence.

NannyKeeper generates the W-2 data and a print-ready PDF; you upload to BSO yourself. We do not e-file on your behalf.

Step 4: File Schedule H with Your 1040

Schedule H attaches to your personal Form 1040 and reports federal household employment taxes for the year: Social Security, Medicare, FUTA, and any federal income tax you withheld.

For a line-by-line walkthrough, see our complete Schedule H guide.

The short version: Schedule H calculates a single total that flows to your 1040 (Schedule 2, Line 9). If you made quarterly estimated payments during the year, you reconcile them on your 1040, not on Schedule H itself.

Estimating What You'll Owe

For a nanny paid $42,000 in 2026 with no federal income tax withheld:

Of that, $3,213 was withheld from the nanny's paychecks (the employee's 7.65% share). Your out-of-pocket is the employer's $3,213 share plus FUTA = $3,255. You still remit the full $6,468 to the IRS. You're just sending what you already withheld plus your own share.

Use our free nanny tax calculator to estimate based on your actual wages.

Step 5: Handle State Filings

State filings are where 2026 year-end work gets specific. The four most common state obligations:

State W-2 (Copy 1). Most states require a copy of each W-2 you issued, filed with the state tax agency. Some states accept federal e-file data directly from SSA; others require a separate state upload.

State unemployment (SUTA) annual reconciliation. You've been paying SUTA quarterly throughout 2026. Most states require an annual reconciliation form (e.g., California's DE 9, New York's NYS-45, Massachusetts' WR-1).

State income tax annual return. If you withheld state income tax from your nanny's paychecks, file the state's annual withholding reconciliation (e.g., CA DE 9 / DE 9C, NY NYS-45-ATT, NJ NJ-W-3).

State disability and paid family leave returns. Required in CA, NJ, NY, HI, RI, WA, CO, MA, CT, OR, with state-specific filing schedules. Some states bundle these with the SUTA return; others separate them.

Each state has its own forms, deadlines, and online portal. Find your state's specific filing requirements →

Penalties for Late W-2 Filing

The IRS uses a tiered penalty system per Information Return Penalties. For 2026 W-2s filed in 2027:

The penalties apply both to filing late with SSA and to furnishing late to the employee, so a single late W-2 can incur double penalties.

If you also owe Schedule H tax late, the IRS layers on a failure-to-file penalty (5%/month, up to 25%) and failure-to-pay penalty (0.5%/month), plus interest from April 15.

Common Filing Mistakes

These are the household-employer filing errors the IRS and SSA catch most often. None require special insider knowledge to avoid. Just attention to the right boxes.

Wrong Social Security number on the W-2. A mismatch with SSA records triggers a notice and may invalidate the filing. Verify the SSN by asking your employee to show their card before you prepare the W-2.

Skipping state filings because federal is done. Federal W-2 filing with SSA does not satisfy state filing requirements. State W-2 (Copy 1), SUTA annual reconciliation, and state income tax withholding annual returns are separate.

Leaving Box 12 Code TT blank for 2026. If you paid any overtime to a non-exempt household employee in 2026, Code TT is mandatory. Leaving it blank is an incomplete return.

Skipping FUTA on Schedule H. Even if FUTA is only $42, you must complete Part II of Schedule H. A blank Part II is treated as an incomplete return.

Not keeping records for 4 years. IRS Publication 926 requires you to keep employment tax records for at least 4 years after the tax becomes due or is paid, whichever is later. That includes timesheets, pay stubs, W-2 copies, and state filings.

Including non-cash compensation in wages. Cash wages only on the W-2 and Schedule H. Free housing, meals, and transit are not included in Box 1 wages (per IRS Publication 926).

What If You Messed Something Up?

You didn't withhold FICA from your nanny

You still owe the employer's 7.65% share plus the employee's 7.65% share. You can't go back and deduct it from past paychecks (state wage protection laws prevent retroactive deductions). Pay your share, and file Schedule H reporting the full FICA obligation.

You missed quarterly estimated payments

File everything now. You'll owe a small underpayment penalty calculated on Form 2210, plus interest from each missed quarterly due date. Filing late with payment is better than not filing at all.

You made a mistake on a W-2

File Form W-2c (Corrected Wage and Tax Statement) with the SSA along with Form W-3c. Common corrections include wrong SSN, incorrect wages, missing Box 12 codes. Issue corrected copies to your employee.

You filed Schedule H with errors

File an amended return on Form 1040-X with a corrected Schedule H attached. The IRS generally allows amendments within 3 years of the original filing date.

Frequently Asked Questions

When is the household employer W-2 deadline for 2026 wages?

February 1, 2027. Both the employee copy (Copies B, C, 2) and the SSA copy (Copy A + W-3) are due the same day. The regular January 31 deadline shifts because January 31, 2027 falls on a Sunday.

Do I file W-2s with the IRS or the SSA?

The W-2 (Copy A) goes to the Social Security Administration, not the IRS. The IRS receives household employment tax data through Schedule H on your Form 1040.

Do I need to issue a W-2 if I paid under $3,000?

For 2026, the FICA threshold is $3,000 per employee. If you paid less than that and did not withhold any federal income tax, you generally don't need to file a W-2 or Schedule H. If you withheld federal income tax at the employee's request, you must file regardless of the wage amount.

Is OBBBA Code TT mandatory for 2026 W-2s?

Yes, for any non-exempt household employee paid qualified overtime in 2026. You report the premium portion only (the half above straight time, not the full overtime wage). Live-in nannies classified as FLSA-exempt from overtime don't get Code TT. See our W-2 filing guide for 2026 wages for box-by-box detail.

Can I file the W-2 on paper?

Yes, but you must use the official red-ink Copy A from the IRS, not a printer copy. The SSA's scanners cannot read non-official forms. Include Form W-3 (transmittal) with paper filings. E-filing through SSA's BSO portal is faster, free, and gives you instant confirmation.

Where do I file state W-2 and SUTA returns?

Each state has its own portal. The state filing requirements page lists the agency, forms, and deadlines for all 50 states + DC.

How NannyKeeper Helps

If you used NannyKeeper in 2026:

• W-2s are ready: print-ready PDFs with all six copies, including Box 12 Code TT for qualifying overtime
• Schedule H numbers are calculated: export your year-end summary and enter the totals into your tax software (or hand to your CPA)
• State filings are tracked: we tell you what's due and when, with links to the right state portal

What we do: calculate taxes, generate documents, send deadline reminders. What you do: upload to SSA BSO, file Schedule H with your 1040, submit state returns through your state's portal.