Spouse was Au Pair - 1040 Filing Jointly - Help Appreciated

[Taxes2018 0]

My wife was an Au Pair from January until July when we got married. We're filling out the 1040, filing jointly.

 

-How do we recognize her Au Pair income? Despite mixed messages online, her host family wasn't required to provide a W-2, and didn't. "Since au pair wages are paid for domestic service in a private home, they are not subject to mandatory U.S. income tax withholding and reporting on Forms 941 and W-2. However, au pair wages are includible in the gross income of the recipients, and au pairs are required to file U.S. individual income tax returns."

 

-She's been in the US since late 2015, when her Au Pair two year program started. Her Green Card application is being processed. She has her EAD. Do we need to sign and send a declaration so she can be treated as a resident, or do the 2+ years here qualify her under Substantial Presence, even though she was on a J-1 Visa? We are hoping to use Free Fillable Forms, so attaching a declaration doesn't seem possible.

 

Any help is greatly appreciated. Thanks!

 

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[Jeanne Adil 1,651]

Additionally, the sponsoring alien or US Citizen and the B-1 domestic must remain in compliance with all U.S. employment tax and income tax regulations and payments. The B-1 domestic is entitled to overtime payments as stipulated by Federal Regulations (or State Regulations where stricter than the Federal standards).

 

they were and should have been  taking out withholding taxes and paying their fair share towards all tax requirements

the above comes from the following site:

 

https://www.homeworksolutions.com/knowledge-center/u-s-department-of-state-regulations-b-1-domestic-servants/

[Taxes2018 0]

Thanks for the response, but that seems to be related to B-1 Visas. Au Pairs fall under the J-1 exchange type visa.

[payxibka 10,045]

An au pair is an exempt individual from the substantial presence test.  I find the IRS website incredibly helpful 

[Taxes2018 0]

6 minutes ago, payxibka said:

An au pair is an exempt individual from the substantial presence test.  I find the IRS website incredibly helpful 

Is it impossible for us to choose resident alien status for her?

[payxibka 10,045]

2 minutes ago, Taxes2018 said:

Is it impossible for us to choose resident alien status for her?

If you do not qualify automatically as a resident alien for tax purposes, you can optionally elect to be treated as one 

[Taxes2018 0]

1 hour ago, payxibka said:

If you do not qualify automatically as a resident alien for tax purposes, you can optionally elect to be treated as one 

That would be the goal. So can we use 1040 and where do we put what she earned as an Au Pair?

[payxibka 10,045]

3 minutes ago, Taxes2018 said:

That would be the goal. So can we use 1040 and where do we put what she earned as an Au Pair?

When in doubt, Line 21 always works

[Taxes2018 0]

2 hours ago, payxibka said:

When in doubt, Line 21 always works

So just one entry on Line 21 and that's it? Seems too easy/too good to be true.

 

No social security and Medicare would have been withheld, but maybe that's fine and a reason W2 isn't required for the host families.

[payxibka 10,045]

9 hours ago, Taxes2018 said:

So just one entry on Line 21 and that's it? Seems too easy/too good to be true.

 

No social security and Medicare would have been withheld, but maybe that's fine and a reason W2 isn't required for the host families.

I find the IRS website invaluable.

 

Au pair wages are not usually subject to social security and Medicare taxes because of the au pair's status as a J-1 nonimmigrant and as a nonresident alien.  

 

However, if you decide to voluntarily elect to have her treated as a resident alien for tax purposes then SS/Medi might be applicable.   

[monkeysgrama 0]

I've been an income tax preparer for 32 years.  You would need a Schedule C, self-employment income.  Put her income in the space that says "income not reported to you on 1099-MISC."  You can deduct any expenses she incurred in order to fulfill her obligations as an au pair.  

[payxibka 10,045]

14 hours ago, monkeysgrama said:

I've been an income tax preparer for 32 years.  You would need a Schedule C, self-employment income.  Put her income in the space that says "income not reported to you on 1099-MISC."  You can deduct any expenses she incurred in order to fulfill her obligations as an au pair.  

If her wages are subject to SE otherwise they need to be excluded from the SE calculation