This is for US host families with an au pair through the State Department's J-1 program. It covers what the IRS says about the stipend, the one case where Social Security and Medicare do apply, how voluntary withholding works, and what records to give your au pair. For a nanny or other household employee who isn't an au pair, the 2026 household employment rules in our Schedule H guide apply in full.
Is an au pair's stipend taxable?
Yes, for the au pair. The IRS says the stipend is wages, because an employer-employee relationship exists between the au pair and the host family; the Department of Labor reached that view in 1994. The au pair must include it in income and file a US tax return.
What changes is who owes what. The IRS describes au pair wages as essentially household employment, and the taxes a host family pays depend on whether the au pair is a nonresident or a resident for tax purposes.
Do host families pay Social Security and Medicare on an au pair?
Usually not. The IRS says au pair wages are usually not subject to Social Security and Medicare taxes because au pairs are typically nonresident aliens due to their J-1 status, and host families are exempt from federal unemployment tax on those wages for the same reason.
| Tax | Nonresident au pair (most) | Resident au pair |
|---|---|---|
| Social Security and Medicare | Not due | Due once 2026 cash wages reach $3,000 |
| Federal unemployment tax (FUTA) | Not due | Due once household wages reach $1,000 in a quarter |
| Federal income tax withholding | Voluntary, if both agree | Voluntary, if both agree |
| Au pair's own return | Form 1040-NR | Form 1040 |
An au pair can be a resident if they were in the US before in F, J, M or Q status as a student, teacher, trainee or researcher, because those earlier days can affect the substantial presence test. If that applies, the household employer rules in IRS Publication 926 cover the stipend like any household wages: Social Security at 6.2% and Medicare at 1.45% from both of you, reported on Schedule H.
Withholding income tax: optional, but often helpful
You don't have to withhold income tax from an au pair. The IRS says au pair wages aren't subject to mandatory income tax withholding, because they are paid for domestic service in a private home. But a nonresident au pair generally can't claim the standard deduction, so the IRS says they are likely to owe income tax.
The IRS suggests two ways to cover it. The au pair can make estimated tax payments on Form 1040-ES (NR). Or, if you both agree, the au pair gives you a Form W-4 and you withhold federal income tax from each week's stipend. You then report and pay the withheld tax on Schedule H with your own return.
- To withhold, you need an employer identification number (EIN).
- Your au pair needs a US Social Security number for the wage reporting.
- Report the withholding on Schedule H (Form 1040), and give your au pair a Form W-2 for the year.
What the stipend is based on
The State Department sets the program rules. Host families pay a weekly minimum stipend based on the program option, and au pairs are compensated under the Fair Labor Standards Act as the Department of Labor interprets it. The State Department's program page doesn't state a dollar figure, so ask your sponsor agency for the current weekly amount.
- Standard program: childcare of no more than 10 hours a day and 45 hours a week.
- EduCare: no more than 10 hours a day and 30 hours a week, with a stipend of 75% of the standard weekly rate.
- Host families pay up to $500 toward the au pair's required coursework (up to $1,000 for EduCare).
- The placement lasts 12 months, with an option to extend by 6, 9 or 12 more months.
What to give your au pair at year end
If you withheld income tax, or a resident au pair's wages were subject to Social Security and Medicare, give them a Form W-2 and file Schedule H. For 2026 wages the W-2 copies are due to the employee and the Social Security Administration by February 1, 2027, and Schedule H goes with your return by April 15, 2027.
If you withheld nothing, keep a simple record of every stipend payment anyway: dates, amounts and the weeks they cover. Your au pair needs those totals to file Form 1040-NR, and a weekly pay stub showing the stipend and any withholding makes that easy for both of you.
Where PayDocs fits
PayDocs makes pay stubs and W-2 employee copies for household employers from your own figures. For an au pair, that can be a weekly stub showing the stipend, any income tax you agreed to withhold and year-to-date totals. PayDocs works out federal income tax, Social Security, Medicare and supported state taxes for 2026 pay dates (see what we calculate); for a nonresident au pair, leave Social Security and Medicare at zero. PayDocs doesn't file Schedule H or anything else. Previewing is free; a PDF is $4.99 per pay stub once checkout opens.
This is general information about US federal rules as of 8 October 2026, not tax or legal advice. State rules add to it; check your state's labor and revenue departments.
Questions
Is an au pair's stipend taxable?
Yes. The IRS treats the stipend as wages, so the au pair includes it in income and files a US return, usually Form 1040-NR. Host families usually don't owe employment taxes on it because most au pairs are nonresidents.
Do host families pay Social Security and Medicare on an au pair?
Usually not, because most au pairs on a J-1 visa are nonresident aliens. If your au pair is a resident for tax purposes, Social Security and Medicare apply once 2026 cash wages reach $3,000, reported on Schedule H.
Do I have to withhold income tax from my au pair?
No. The IRS says au pair wages aren't subject to mandatory income tax withholding. You can withhold if you both agree and the au pair gives you a Form W-4; you then report it on Schedule H and issue a W-2.
Do I give my au pair a W-2?
Yes, if you withheld income tax or Social Security and Medicare applied. For 2026 wages the W-2 is due by February 1, 2027. Without withholding, keep a record of payments so your au pair can file.
Do host families need an EIN for an au pair?
Only if you are required to withhold tax and file a Form W-2, according to the IRS. A family that agrees to voluntary withholding needs one to report it.
Sources
- IRS: Au pairs (updated 19 August 2026)
- IRS: Publication 926 (2026), Household Employer's Tax Guide
- US Department of State: J-1 visa, Au pair program
Sources checked October 8, 2026. This article explains how pay documents work; it is not tax or legal advice.
