Year-End Nanny Tax Checklist: December 2026 Prep

December is here, which means it's time to wrap up your nanny's 2026 wages and get ready for the W-2 in January. A little work now saves a lot of stress later.

Here's your complete year-end checklist for the 2026 tax year.

Need a refresher? See our nanny taxes guide for rates and what you're responsible for.

Before December 31

1. Verify your records

Double-check that your records match reality:

• Total wages paid matches your bank records
• All withholding amounts are correct
• Your nanny's name and Social Security number are accurate
• Your EIN is correct

Two things to know while you check. Wages count in the year you paid them, so a December pay period you pay on January 2 is a 2027 wage. And if you paid $3,000 or more in cash wages to any one employee during 2026, Social Security and Medicare taxes apply to that employee's wages for the year.

Errors now create problems in January.

2. Confirm your nanny's information

You need accurate info for their W-2:

• Legal name (matches their Social Security card)
• Social Security number
• Current mailing address

If anything changed during the year, update it now.

3. Run final payroll

Process your last payroll of 2026:

• Include any December wages you're paying before December 31
• Calculate final withholding amounts
• Record year-to-date totals
• Issue the final pay stub

Paid your nanny overtime this year? Starting with 2026 W-2s, the overtime premium gets reported in its own spot (Box 12, code TT). Our overtime guide explains what counts, and NannyKeeper fills it in for you.

4. Consider year-end bonuses

Planning to give a holiday bonus? Remember:

• A cash bonus is taxable wages, just like a paycheck
• Withhold Social Security, Medicare, and any income tax you normally withhold
• Add the bonus to the year's W-2 wages

If you give a $500 bonus on December 20, it's a 2026 wage. Give it on January 3 and it's a 2027 wage.

Our nanny holiday bonus guide works through what a bonus costs, how to gross it up so your nanny takes home a round number, and when a December bonus pushes a part-time sitter over the $3,000 threshold.

5. Review your FSA and childcare credit

Did you use a Dependent Care FSA, or plan to claim the Child and Dependent Care Credit?

• Have your nanny's Social Security number ready for Form 2441
• Confirm your total childcare expenses for the year
• Keep receipts and pay stubs

An FSA is use-it-or-lose-it, so spend it down before your plan-year deadline. Our guide to the FSA and the childcare credit has the 2026 contribution limit and how the two fit together.

January tasks

By January 15, 2027: pay Q4 estimated taxes

The final quarterly payment for 2026 covers your October through December payroll:

• Calculate what you owe
• Pay via IRS Direct Pay
• File and pay your state unemployment report

One exception the IRS spells out on Form 1040-ES: you can skip the January 15 payment if you file your 2026 return and pay the whole balance by February 1, 2027. If you're not planning to file that early, just make the payment.

On the state side, the fourth-quarter unemployment report is usually due at the end of January. For 2026 wages that works out to February 1, 2027 in the states we track, since January 31 is a Sunday. Some states let household employers file once a year instead, so check your state guide for your exact form and date.

By February 1, 2027: the W-2 deadline

January 31, 2027 falls on a Sunday, so the deadline moves to Monday, February 1.

Give to your nanny:

• Copy B, which they file with their federal return
• Copy C, for their records
• Copy 2, which they file with their state return

Send to the Social Security Administration:

• Copy A of the W-2
• Form W-3 transmittal

Filing options:

• Electronic filing at ssa.gov/employer
• Mail Copy A and the W-3 to the Social Security Administration

Prepare Schedule H

Schedule H reports household employment taxes on your personal return:

• Total wages paid
• Social Security and Medicare taxes
• Federal unemployment tax
• Income tax withheld

You'll file it with your Form 1040 by April 15, 2027.

Year-end tax calculations for 2026

Here's what you should have paid on 2026 wages (use our free nanny tax calculator to check your numbers):

*The net rate after the full state credit. Families in a state with a FUTA credit reduction owe a bit more; the IRS publishes that list late in the year.

Example: If you paid $40,000 in 2026 wages:

State unemployment tax comes on top of that, and it depends on your state's rate and wage base.

Common year-end questions

What if I overpaid estimated taxes?

You'll get a refund when you file your return, or you can apply the overpayment to next year.

What if I underpaid?

Pay the difference with your return. If you underpaid by enough, the IRS may add an underpayment penalty, so it's worth getting the January 15 payment right.

My nanny left mid-year. Do I still need to file?

Yes. Issue a W-2 for whatever wages you paid them in 2026, even if they only worked part of the year.

Can I fix a W-2 I already issued?

Yes. File Form W-2c (Corrected Wage and Tax Statement) if you find errors on a W-2 you've already sent.

NannyKeeper year-end features

If you use NannyKeeper, we've got you covered:

• Your W-2s generate automatically in January, with Box 12 code TT filled in if you paid overtime
• Schedule H numbers are ready for your tax return
• A year-end summary puts all your 2026 totals in one place
• We remind you before each year-end deadline, including the W-2 date, which is January 31 most years and the next business day when January 31 lands on a weekend or holiday

No manual calculations required.

Year-end checklist summary

Start checking things off now and January gets a lot quieter.

Get your W-2s ready →