W-2 for Household Employees: 2026 Filing Guide

If you paid a nanny, housekeeper, or other household worker $3,000 or more during 2026, you'll need to give them a W-2 and file Copy A with the Social Security Administration by February 1, 2027 (the usual January 31 deadline shifts because January 31, 2027 falls on a Sunday).

Two material changes for 2026 wages. The FICA threshold rose from $2,800 to $3,000, and Code TT in Box 12 is now mandatory for any qualified overtime premium you paid your employee.

The W-2 is one piece of the puzzle. See our Schedule H guide for how it fits into your tax return. Filing for 2025 wages instead? Use our 2025 W-2 guide.

What's New for 2026 W-2s

Two changes from prior years' W-2s for household employers reshape the form: a higher FICA threshold and a brand-new mandatory Box 12 code for overtime.

1. FICA threshold raised to $3,000. The Social Security and Medicare tax threshold for household employees rose from $2,800 (2025) to $3,000 for 2026 wages. If you paid your employee less than $3,000 in cash wages during 2026, you don't owe FICA and no W-2 is required.

2. Code TT becomes mandatory. The One Big Beautiful Bill Act (OBBBA) introduced Code TT in Box 12 to report qualified overtime compensation. For tax year 2025, Code TT was optional under transition relief. For tax year 2026 and onward, it's mandatory if you paid any overtime premium. Critically: Code TT reports the premium portion only, the "and-a-half" half of time-and-a-half pay, not total OT wages. The dedicated section below walks through the math with a worked example.

3. Social Security wage base rose to $184,500. Up from $176,100 in 2025 (per the SSA). Box 3 caps at this amount; Box 5 (Medicare) has no cap.

The 2026 wage-cycle calendar

What Is a W-2, and Why Do You Need One?

TL;DR: A W-2 reports total wages and taxes withheld. You must give your nanny a copy AND file with the SSA by February 1, 2027 (for 2026 wages). The penalty for late filing is $60–$340 per form.

A W-2 (officially "Wage and Tax Statement") reports what you paid your employee and what taxes were withheld. It's the same form every employer in America uses, from giant corporations to you, paying your nanny.

Your employee needs their W-2 to file their personal tax return. The Social Security Administration needs a copy to track earnings. And you'll use the information when filing your own taxes.

The deadline is February 1, 2027 (not January 31, because that's a Sunday). You need to:

1. Give your employee their copy by February 1, 2027
2. File Copy A with the Social Security Administration by February 1, 2027

New to nanny taxes? Start with our complete guide to nanny taxes for the basics, or see our nanny taxes overview for a quick summary with rates.

Do You Actually Need to File a W-2?

You must provide a W-2 if you paid a household employee $3,000 or more in cash wages during 2026. (Prior thresholds: $2,800 in 2025, $2,700 in 2024.)

This is per employee. If you paid two different babysitters $2,000 each during 2026, neither needs a W-2. If you paid one nanny $30,000, that requires a W-2.

What the W-2 Looks Like

A W-2 has 20+ numbered boxes; household employers usually fill in six (Boxes 1, 3, 4, 5, 6, plus Box 12 Code TT for any overtime premium). The rest you can leave blank.

The Key Boxes

If your household employee earned more than $184,500 in 2026 (the Social Security wage base for 2026), Box 3 caps at $184,500. Box 5 (Medicare wages) has no cap.

What About State Boxes?

If you withheld state taxes, you'll also fill in:

• Box 15: State and employer's state ID number
• Box 16: State wages
• Box 17: State income tax withheld

If your state has no income tax (like Texas or Florida), you can leave these blank.

Other Boxes You Might Use

• Box 12: Special codes. For 2026 wages, use Code TT to report qualified overtime premium under the OBBBA, mandatory if you paid any OT premium. Full walkthrough in the Code TT section below.
• Box 13: Checkboxes for statutory employee, retirement plan, etc. (usually leave blank)
• Box 14: Other (state disability, local taxes, etc.). This is not where Code TT goes.

Most household employers without overtime only need to fill boxes 1-6 plus the identifying information at the top. If you paid overtime, also complete Box 12 Code TT.

Code TT: Overtime Premium

Code TT is new for 2026 W-2s, and the mechanics catch most filers off-guard. The IRS W-2 instructions define it precisely; the practical math takes a worked example.

What Code TT Reports

Code TT in Box 12 (NOT Box 14) reports the premium portion of qualified overtime compensation your employee earned during 2026. "Premium portion" is the extra half of time-and-a-half pay, not the total overtime wages.

Example

Your nanny works 45 hours one week, with 5 OT hours:

• Regular hourly rate: $25/hr
• Regular pay (40 hrs): $1,000
• OT hourly rate: $37.50/hr (1.5 × $25)
• OT pay (5 hrs): $187.50

The OT pay of $187.50 breaks into:

• Regular component: 5 × $25 = $125
• Premium component: 5 × $12.50 = $62.50

The $62.50 is the "premium portion." That's what goes in Box 12 Code TT, not the full $187.50 of OT pay.

Annualized (52 weeks of 5 OT hours per week):

• Total OT premium for the year: $62.50 × 52 = $3,250
• Code TT amount: $3,250

The full $187.50 of OT pay is already part of Box 1 (total wages). Code TT just calls out the premium half so the IRS can match it against your employee's "no tax on overtime" deduction (up to $12,500 single / $25,000 MFJ for tax years 2025–2028 under OBBBA).

When Code TT Doesn't Apply

• Live-in domestic employees are exempt from FLSA overtime, so they typically don't have qualified OT to report.
• Salaried exempt workers: if your employee is on salary and exempt from OT, there's no Code TT.
• Straight time only: if you paid no OT premium during 2026, leave Box 12 blank.

If you used a payroll service like NannyKeeper during 2026, Code TT is calculated and pre-filled from your actual hourly records. No manual math.

The Different W-2 Copies (Yes, There Are Several)

A W-2 comes with multiple copies, each going to a different place:

Pro tip: Give your employee Copy B, Copy C, and Copy 2 together. They'll sort out which one to use.

How to Create the W-2

You can create a 2026 W-2 four ways: through a payroll service like NannyKeeper, through tax software, through the SSA's free BSO portal, or by hand on official red-ink forms.

Option 1: Use NannyKeeper (Easiest)

If you used NannyKeeper during 2026, your W-2 is already generated. Every box is calculated automatically from the payroll you ran during the year, including Code TT for any OT premiums. Log in, download the PDF, and give it to your employee.

Start tracking payroll for free →. W-2 generation is included with all paid plans (from $10/mo).

Option 2: Use Tax Software

Programs like TurboTax, H&R Block, or TaxAct can generate W-2s. You'll enter the wage and tax information, and they'll produce the form. Make sure your software is updated to handle Code TT for tax year 2026.

Option 3: SSA's Free Online Tool

The Social Security Administration has a free tool called Business Services Online (BSO) at ssa.gov/bso that lets you create and file W-2s directly. It's free, but you'll need to enter everything manually, including Code TT.

Option 4: Buy Paper Forms

You can order official W-2 forms from the IRS or office supply stores. The red Copy A must be an official form. You can't just print it on regular paper. The 2026 form (filed in 2027) includes the Code TT designation in Box 12.

How to File Copy A with SSA

You must submit Copy A to the Social Security Administration. Two ways:

E-file (Recommended)

1. Create a free account at ssa.gov/bso
2. Enter your W-2 information or upload a file
3. Submit and get confirmation

E-filing is free, instant confirmation, no postage. The deadline is the same as paper filing: February 1, 2027.

Mail Paper Forms

1. Get official red-ink W-2 forms (2026 tax year version)
2. Fill out Form W-3 (transmittal form that summarizes all W-2s)
3. Mail to the SSA address for your state

You can't print Copy A on regular paper. The SSA's scanners are calibrated for the official red forms.

Common W-2 Mistakes for 2026

The mistakes that cost household employers the most are wrong Social Security numbers, math errors on Boxes 3-6, and (new for 2026) putting Code TT in Box 14 instead of Box 12. Here's the full list.

Wrong Social Security number Triple-check this. A wrong SSN causes notices, delays, and headaches.

Math errors on Box 3/4 and Box 5/6 Social Security tax (Box 4) should be exactly 6.2% of Box 3, capped at $11,439 against the $184,500 wage base. Medicare tax (Box 6) should be exactly 1.45% of Box 5. Double-check with our free nanny tax calculator.

Forgetting state copies Most states require Copy 1 filed with them. This is separate from the federal filing. Check your state's requirements.

Missing the deadline February 1, 2027 is firm. Penalties: $60 per form if filed within 30 days late, $130 within mid-August, $340 after August 1.

Using the wrong year's form Make sure you're using the 2026 W-2 form (filed in 2027), not 2025 or earlier. The 2026 form includes Code TT designations in Box 12.

Putting Code TT in Box 14 instead of Box 12 Common mistake. Code TT goes in Box 12 with the OBBBA-designated code, not Box 14 (which is for "other" amounts).

Reporting full OT wages in Code TT instead of premium only Another common error. Code TT is the premium portion only: the extra half of time-and-a-half. Total OT wages are already in Box 1.

Don't want to worry about any of this? NannyKeeper calculates every box automatically from your payroll records, including Code TT. See how it works →

What If You Made a Mistake?

If you discover an error after filing, use Form W-2c (Corrected Wage and Tax Statement) to fix it. You'll file the corrected form with the SSA and give an updated copy to your employee.

Common corrections include:

• Wrong Social Security number
• Incorrect wage amounts
• Wrong employer identification number
• Wrong Code TT amount (frequently miscalculated in year one)

State-Specific Requirements

Each state has different rules for W-2 filing:

Find your state's specific requirements →

How NannyKeeper Helps

If you're using NannyKeeper through 2026, W-2 season takes about 5 minutes instead of an afternoon:

1. W-2s are automatically generated from your payroll data. Box 1, 3, 4, 5, 6 all calculated from actual pay records.
2. Code TT pre-filled. We track hourly rates and overtime premiums all year, so the Box 12 amount is correct.
3. State boxes filled in. We calculate state wages and withholding for your state.
4. Print-ready PDFs include all copies (A, B, C, D, 1, 2). Print and distribute.
5. Deadline reminders so you never miss February 1, 2027.

What we do: Generate accurate, complete W-2 documents from your payroll data.

What you do: Give copies to your employee, upload Copy A to SSA's free BSO portal, and file Copy 1 with your state if required.

We don't file on your behalf, but we eliminate the math and the box-by-box guesswork.

Get started free → for free payment tracking, with full payroll from $10/mo.

Learn more about our household employer payroll services.

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FAQ

What is the W-2 deadline for 2026 wages?

February 1, 2027. Normally the W-2 deadline is January 31, but January 31, 2027 falls on a Sunday, so the IRS deadline shifts to the next business day. You must give your employee their copy AND file Copy A with the Social Security Administration by February 1, 2027.

What's the household employee threshold for 2026?

$3,000. If you paid a household employee $3,000 or more in cash wages during 2026, you owe Social Security and Medicare taxes (FICA) and must issue a W-2. The threshold rose from $2,800 (2025) to $3,000 (2026). The FUTA threshold is separate: $1,000 in any single calendar quarter (aggregate across employees).

What is Code TT on a 2026 W-2?

Code TT in Box 12 reports the premium portion of qualified overtime compensation paid during 2026: the "and-a-half" half of time-and-a-half pay, not total OT wages. It's mandatory for tax year 2026 W-2s under the One Big Beautiful Bill Act (OBBBA). For 2025 W-2s it was optional under transition relief. Live-in domestic employees are typically exempt because they don't have FLSA overtime.

What if I didn't withhold any taxes?

You still need to file a W-2 if you paid above the threshold ($3,000 for 2026). Just enter $0 in the withholding boxes (2, 4, 6). You'll still owe the employer portion of taxes on Schedule H.

Can I give my employee a 1099 instead?

No. Household workers are almost always employees, not contractors. A 1099 is for independent contractors, and your nanny isn't one. See our guide on employee vs. contractor.

What if my employee lost their W-2?

Print another copy from your records. You're required to keep records for at least 4 years.

Do I need an EIN to file a W-2?

Yes. You need an Employer Identification Number. See our EIN guide for household employers for step-by-step instructions, or get one free at irs.gov.

What about household employers with multiple employees?

File a separate W-2 for each employee who earned above the threshold ($3,000 for 2026). The W-3 transmittal form summarizes all of them.

What if my nanny quit mid-year?

You still need to file a W-2 for any employee you paid $3,000 or more during 2026, even if they only worked part of the year. The W-2 should reflect actual wages paid and taxes withheld through their last day. Code TT (if applicable) should reflect the OT premium paid during their employment.

Do I need to file state W-2s separately?

It depends on your state. Many states accept the federal W-2 (Copy 1 is specifically for state/local filing). Some states require a separate filing or registration. Check your state's specific requirements for details.

What's a W-2c and when do I need one?

A W-2c is a corrected W-2. You'll need one if you discover errors on a W-2 you've already filed: wrong Social Security number, incorrect wages, miscalculated taxes, or a wrong Code TT amount. File the W-2c with the SSA as soon as you find the error and give your employee a copy.

How is the 2026 W-2 different from the 2025 W-2?

Three things changed for tax year 2026: the FICA threshold rose from $2,800 to $3,000, the Social Security wage base rose from $176,100 to $184,500 (affecting Box 3 caps for high earners), and Code TT in Box 12 became mandatory for any qualified overtime premium under the OBBBA (it was optional for 2025 under transition relief).