How are au pair taxes different from nanny taxes?
Updated November 6, 2026 · For 2026 · General information, not tax or legal advice
An au pair is a household employee of the host family, but because they are in the United States on a J-1 exchange visa the usual payroll taxes mostly do not apply.
What the host family owes
- No Social Security or Medicare. Nonresident aliens on J-1 visas are exempt. This holds for the au pair's first two calendar years in the U.S.; an au pair who extends into a third calendar year can become a resident alien, at which point ordinary nanny withholding starts.
- No federal unemployment tax, for the same reason, and most states follow.
- No required income tax withholding. You may withhold if the au pair asks and you both agree; then you issue a W-2 and file Schedule H for the withholding.
In the normal case the host family files nothing for the au pair. Keep records of the weekly stipend; the au pair needs the total.
What the au pair owes
The weekly stipend is taxable wages in the U.S. The au pair files Form 1040-NR each spring and pays income tax on the stipend; they generally cannot claim the standard deduction, so even a modest stipend produces a small tax bill. Sponsor agencies provide guidance, and host families are not responsible for the au pair's return.
Care credit and FSA
The stipend, plus the program fee paid to the sponsor agency, counts as a child care expense for the child and dependent care credit and for a dependent care FSA. Report the agency or the au pair on Form 2441.
Wage rules
The State Department sets the minimum weekly stipend and the maximum hours (45 a week, 10 a day). Some states and courts have held that state minimum wage applies on top of the federal program rules, most notably in Massachusetts. Check your state guide and your sponsor agency.
If you also employ a nanny
Only the nanny goes through payroll. An au pair and a part-time nanny in the same house are handled completely separately. CareTab is built for the nanny side; if your au pair becomes a resident alien and payroll taxes start, add them as an employee at that point.
Frequently asked
Do host families pay Social Security tax on an au pair?
No. Au pairs are J-1 nonresident aliens, so their stipend is exempt from Social Security, Medicare and federal unemployment tax. The exemption ends if the au pair becomes a resident alien, typically after two calendar years.
Do I file Schedule H for an au pair?
Not unless you withheld federal income tax or the au pair has become a resident alien. Most host families file nothing beyond Form 2441 for the care credit.
Does the au pair file a tax return?
Yes. The stipend is taxable wages; the au pair files Form 1040-NR and usually owes some tax, since no withholding was taken.
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