How Tax Breaks Work With Care.com HomePay

Raising kids is expensive. But thanks to federal tax breaks, you can save thousands of dollars a year on child care. You could even end up spending less on your total care costs. We’ll show you how.
Child care tax breaks help offset the costs of caring for young children, and apply to money you pay to a nanny or babysitter.
There are two types of tax breaks you should know. Dependent Care Flexible Spending Accounts (or FSAs) and the Child or Dependent Care Tax Credit.
Dependent Care FSAs are set up through your job and allow you to pay for up to $10,500 of child care-related expenses using pre-tax dollars. Depending on your marginal tax rate, you could save between $4,000 and $4,800 per year.
To enroll, check with your HR or Accounting Department at work.
For the Child or Dependent Care Tax Credit, your savings will depend on your Adjusted Gross Income, but families with one child can save up to $2,000 a year and those with 2 or more children can save as much as $4,000 a year. Child care is expensive, and these savings can really impact your total cost of care.
But before you can be eligible for either of these tax breaks, your child care expenses have to be legally documented.

Don’t worry, by using Care.com HomePay to handle your nanny payroll and taxes, you can be sure to get all the tax savings you qualify for, without the hassle of tracking, preparing and filing it yourself.

Most families find that the money saved with these tax savings is often more than the cost to pay their employee legally.

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Hiring private in-home care can help you provide high-quality, skilled support for your loved one while cutting care expenses. But keeping on top of your responsibilities as an employer can be confusing and time-consuming. If you're thinking of hiring directly, let HomePay work for you. Private employment makes in-home care affordable, and HomePay makes it easy.For more information: https://www.care.com/homepay/senior-c...

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Paying your Nanny legally can have big implications that you may not see coming. Hear how Lisa was able to provide Laura with proof of income that allowed her to refinance her house and become a foster parent:
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Here is an overview of what we do... Care.com is the largest online service to help families find caregivers, and caregivers find jobs. We provide a trusted community for families and caregivers—including nannies, babysitters, special needs caregivers, tutors, senior caregivers, pet caregivers, housekeepers and more—to easily connect and give or get advice.

Our goal is to help our users put care first by connecting with and selecting the best fit for their needs based on profiles, background checks and reviews.

Our Mission is to empower families to put care first by helping them find caregivers for their children, loved ones, pets, and homes—and help caregivers find new jobs that match their schedules and skillsets.