You just had a baby. You're exhausted. Someone recommended a night nurse, and suddenly you're sleeping again. Life-changing.
Then it hits you: you're paying this person $300 a night. Do you owe taxes on that?
Almost certainly yes. And the math gets there fast.
Night Nurses Are Household Employees
A night nurse works in your home, on a schedule you set (typically 8pm to 6am), caring for your newborn. Under IRS Publication 926, that's a household employee—full stop.
It doesn't matter that the arrangement is temporary. It doesn't matter that they might call themselves a "newborn care specialist" or "NCA" or "baby nurse." The IRS cares about one thing: you're paying someone to work in your home, and you control when and how.
The exception: If you hire through an agency that employs the night nurse directly—meaning the agency handles payroll, taxes, and sends you an invoice—the agency is the employer. But if you found your night nurse through a Facebook group, a doula referral, Care.com, or word of mouth, you're the employer.
How Fast the $3,000 Threshold Gets Crossed
This is where night nurses differ from most household workers. The wages are high enough that you'll cross the threshold almost immediately.
| Arrangement | Nightly Rate | Threshold Crossed After |
|---|---|---|
| 3 nights/week | $250/night | 4 weeks |
| 5 nights/week | $250/night | 2.5 weeks |
| 3 nights/week | $300/night | 3.5 weeks |
| 5 nights/week | $300/night | 2 weeks |
| 5 nights/week | $400/night | 1.5 weeks |
| 7 nights/week | $350/night | 1.5 weeks |
The reality: If your night nurse works more than a handful of shifts, you owe employment taxes. There's essentially no scenario where a regular night nurse arrangement stays below $3,000.
Use our household employer calculator to see the exact tax cost for your situation.
What Taxes Do You Owe?
The taxes are identical to any household employee—nanny, housekeeper, or caregiver. No special rules for night nurses.
Employer taxes (you pay on top of wages)
| Tax | Rate | Applied To |
|---|---|---|
| Social Security | 6.2% | All wages up to $184,500 |
| Medicare | 1.45% | All wages (no cap) |
| FUTA (federal unemployment) | 0.6% | First $7,000 of wages |
| State unemployment (SUTA) | Varies | Varies by state |
Employee taxes (withheld from their pay)
| Tax | Rate |
|---|---|
| Social Security | 6.2% |
| Medicare | 1.45% |
| Federal income tax | Based on their W-4 |
| State income tax | Varies by state |
A real example
Say you hire a night nurse in California for 8 weeks at $300/night, 5 nights/week — that's $12,000 total.
| Tax | Amount |
|---|---|
| Employer Social Security (6.2%) | $744 |
| Employer Medicare (1.45%) | $174 |
| FUTA (0.6% on first $7,000) | $42 |
| CA SUTA (~3.4% on first $7,000) | $238 |
| CA ETT (0.1% on first $7,000) | $7 |
| CA SDI (employee-paid, 1.3%) | $156 |
| Total employer taxes | ~$1,205 |
That's about $150/week in employer taxes on top of $1,500/week in wages—roughly 10% of wages.
What You Need to Do
The process is the same as for any household employee. The only difference is timing—because night nurses often start within days of coming home from the hospital, you may need to move quickly.
Before they start (or within the first week)
Get an EIN. Free and takes 5 minutes at irs.gov. You can apply online and get it immediately. Our EIN guide walks through every screen.
Have them fill out a W-4 and I-9. The W-4 determines how much federal income tax to withhold. The I-9 verifies work eligibility.
Check your state requirements. Some states require additional registration, state income tax withholding, or disability insurance. Find your state's requirements →
While they're working
Track every payment. Record dates, hours, and amounts. This is your payroll record.
Withhold and set aside taxes. 7.65% from their pay (Social Security + Medicare), plus your matching 7.65% employer share.
After the arrangement ends
Make quarterly estimated tax payments. Due January 15, April 15, June 15, September 15—whichever deadlines fall within or after the employment period. See our quarterly deadline guide.
Issue a W-2 by January 31. Even if the night nurse only worked for 6 weeks in March. You still owe a W-2 by the following January.
File Schedule H with your tax return. This is where you report household employment taxes. Our Schedule H walkthrough covers it line by line.
Can You Claim a Tax Credit?
Yes—and this is the silver lining. If both parents work (or one works and one is a full-time student), you likely qualify for the Child and Dependent Care Credit.
The credit is worth up to $1,500 for one child or $3,000 for two or more (updated for 2026 under the One Big Beautiful Bill Act). It's based on qualifying expenses up to $3,000 (one child) or $6,000 (two+), with the credit percentage ranging from 20% to 50% depending on your income.
You can also use a Dependent Care FSA (DCFSA) to pay up to $7,500/year in pre-tax dollars—saving you roughly $2,000-$3,000 in taxes depending on your bracket.
Important: You can only claim these benefits if you pay taxes properly. Paying under the table means losing the credit and the FSA benefit entirely.
"But It's Only 6 Weeks—Is It Really Worth the Hassle?"
We hear this a lot. Here's the honest answer: yes, it's worth it.
At $300/night for 5 nights/week for 6 weeks, you're paying $9,000. That's real money—and the IRS considers it employment. The risk of not reporting:
- Back taxes + penalties if the IRS finds out (and they often do when night nurses file their own taxes)
- Lost tax credit — the Child and Dependent Care Credit could save you $1,500+ that you can't claim without a W-2
- Lost DCFSA savings — another $2,000-$3,000 in potential tax savings gone
The setup takes about 30 minutes. After that, NannyKeeper handles the calculations for $10/month—and you can cancel after the arrangement ends.
Night Nurse vs. Newborn Care Specialist: Any Tax Difference?
No. "Night nurse," "newborn care specialist (NCA)," "baby nurse," and "night nanny" are all the same thing from a tax perspective. The IRS doesn't distinguish between job titles—they look at the working relationship.
Some NCAs have certifications or specialized training. That's great for your baby, but it doesn't change their tax classification. A certified NCA working in your home is an employee just like an uncertified one.
See what you'll owe
Use our free calculator to estimate your nanny tax costs for 2026.
FAQ
Do I owe taxes if the night nurse only works a few nights?
It depends on total pay. The threshold is $3,000 per calendar year (2026). At $300/night, you'd need to keep it under 10 nights total to stay below the threshold. Once you cross $3,000, taxes apply to all wages—not just the amount over $3,000.
What if I pay the night nurse through Venmo or Zelle?
The payment method doesn't change your tax obligations. Whether you pay cash, check, Venmo, or Zelle, you're still the employer and still owe taxes if wages exceed $3,000. Read our guide on paying via Venmo and Zelle for more details.
Can I hire my mother as a night nurse and pay her?
Yes, but the tax rules differ for family members. Wages you pay to your parent for domestic service are generally exempt from both FICA and FUTA—but there's an exception for single parents (divorced, widowed, or with a spouse who can't provide care) who have a child under 18. In that case, both FICA and FUTA apply. See our family member tax exemptions guide for the full breakdown.
Does the night nurse need to report this income?
Yes. Your night nurse is required to report all wages as income, regardless of whether you issue a W-2. In practice, many night nurses want proper documentation because it helps them qualify for mortgages, car loans, and builds their Social Security credits.
What if the night nurse works for multiple families?
Each family is a separate employer. If your night nurse works for you three nights a week and another family two nights a week, both families may owe employment taxes independently. The $3,000 threshold applies per employer, not per worker.