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nannyshel · Mar 7, 2009, 08:22 AM

I am a nanny for a family and started for them in Feb of 08.
They didn't want to claim any taxes on my income but I insisted.
When I got my W2 from them a week ago, and tried to file electronically
Through Turbo Tax, my return got rejected by the IRS with the reason stating
That the EIN on my W2 was issued in 09 and is not for 08.
Turbo Tax said I had to send in my return and cannot file electronically,
But what will happen now that I have found the EIN is wrong? Send in my taxes as is?
Thanks!

MukatA · Mar 8, 2009, 06:23 AM

Did the employer deduct SSN and Medicare tax from your income?

nannyshel · Mar 8, 2009, 03:04 PM

Nope- they didn't take any taxes out, and I confronted them as I knew that by law, they were responsible for half my soc sec and medicare. They finally admitted (after they apparently checked themselves) that they were indeed responsible, and they said they'd pay it... but, got my w2 (at the end of January finally) and nothing was taken out. I have a son who was 18 last year that I can claim as a dependent (but will not be able to next yr as he turned 19) and luckily, qualified for the EIC so I will still get some mula back from Federal... but, just not sure what to do with the EIN being wrong. My sis said I may be able to refile electronically without anything in that space... but not sure...
I've been a nanny for 19 years and never had issues like this with my employer. To top this off, they now want me to watch their children in my home so that they can skip on having to pay taxes for 09, which will then make me self employed and on my own (again) with all the taxes owed. They also cut my pay by $2/hour 2 months ago as their company went under and they both had to find new jobs.
Both their new employers offer them $5000/year pre-tax money to put towards day care , which they are taking advantage of. I had to put my soc sec # and name on some forms for them to do so, yet they say they are not claiming any of my pay on their taxes...
How is this possible? Aren't there benefits for them at tax time to claim any child care expenses? I don't understand their thinking, and how they can each claim that $5000 pre-taxed but then not file any of this on their taxes. I understand we are all fighting to stay afloat with the current economic situation, but I am getting hit hard by them and am unfortunately, looking for a new family to work for.

AtlantaTaxExpert · Apr 30, 2009, 12:58 PM

NannyShel:

Trust me on this, you are better off without these people as your "employers".

When the IRS gets through with them, they will end up paying 2-3 times in fines and interest what they would have paid had they paid the taxes properly and on time to begin with.

If you want to continue to work with them as a self-employer child care provider, that is your choice. But in doing so, you should raise your rates to cover the additional taxes incurred.