1b — Household Employee Wages Updated for tax year 2025

What this line means

Wages you earned as a household employee — nanny, housekeeper, private nurse, or personal caretaker — that were not reported on a W-2. If your household employer did not withhold taxes or give you a W-2, you still report the income here. This line catches wages that fell outside the normal W-2 system.

Does this apply to you?

• You worked as a nanny, babysitter, or au pair and earned $2,800 or more from one household employer in 2025
• You were a private home health aide or in-home caregiver paid directly by the family
• You worked as a personal chef, housekeeper, or gardener for a private household
• You received cash payments for household work and your employer did not issue a W-2

Easy to overlook

The $2,800 threshold applies per employer, not total Your household employer is required to withhold and pay employment taxes once they pay you $2,800 or more in a calendar year. But even if you earned less than that threshold from one employer, the income is still taxable and reportable. The threshold only determines whether the employer must handle payroll taxes — it does not make the income tax-free. ¹ [SOURCE: IRS Publication 926 — Household Employer’s Tax Guide]

Cash payments are still taxable income Household employees paid in cash often assume this income is “off the books.” It is not. The IRS expects all earned income to be reported regardless of how you were paid or whether your employer filed any forms. Getting paid cash does not create a tax exemption — it just means there is no automatic paper trail. ² [SOURCE: General filing pattern — unreported household employment income]

Watch out for this

Not reporting household wages at all because no W-2 was issued. Many household employers fail to provide W-2s, and employees assume that means the income does not need to be reported. The IRS still considers it taxable income, and unreported wages can surface during audits triggered by other discrepancies on the return.

Related lines on your return

• Line 1a — Form 1040 — W-2 wages; if your household employer did issue a W-2, report there instead
• Line 1z — Form 1040 — Total of all wage sub-lines including household employee wages
• Schedule H — Form 1040 — Your employer’s form for reporting household employment taxes