Lisa Bresolin

Due to a recent job change, I am no longer able to continue on as a LCC for Cultural Care.  Please contact Lisa Bresolin with any questions or concerns.  Thank you!

Taxes & Financial Matters

While Cultural Care is not able to provide specific tax information for host families because their circumstances are so different, we are pleased to provide general guidelines regarding host family and au pair taxes, as well as information to help au pairs complete their tax returns. 

I am currently interviewing tax professionals to see if I can locate an inexpensive tax professional that could handle an au pairs federal and state returns.  I will post here and email host families by the end of March if I was able to find someone that is low cost and comes with excellent references.

Please note that Cultural Care is not licensed to provide official tax advice, so none of our staff may counsel host families or au pairs regarding tax issues.  Since tax laws vary from state to state and are changed on a frequent basis, we advise host families and au pairs to speak with a local professional tax advisor or directly with the Internal Revenue Service for definitive answers to any specific questions regarding taxation.

Important Au Pair Tax Information

• The IRS considers au pairs to be “employees” of the host family for tax reasons, even though they are in the United States on a “cultural exchange” visa.  This means that au pairs are required to file U.S. individual income tax returns even though many au pairs will not owe any taxes
• By April 15, the au pair should file form 1040NR-EZ or 1040NR to report his or her au pair stipend for the previous calendar year
• In order to file income taxes in the United States, all au pairs need to have either a social security number or an Individual Taxpayer Identification Number (”ITIM”)
• Au pairs are allowed to claim a personal exemption for themselves, but are not eligible for the standard deduction in their tax filing.   As stated above, au pairs are not considered “students” by the IRS so they are also not eligible to exclude au pair wages from gross income under the student article of any U.S. income tax treaty
• Because the maximum tax burden for the vast majority of au pairs is less than $1,000, there is usually no need for the au pair to make quarterly estimated payments, or to have the host family withhold taxes.  There are some exceptions to this rule which are explained in our more detailed guide which is downloadable above.

Important Host Family Tax Information

• Child and Dependent Care Tax Credit: As long as you have used the au pair’s child care services in order to work or look for employment, the stipend paid to your au pair, the costs of room and board and the program fees paid to Cultural Care are all eligible under the Child and Dependent Care Tax Credit.  Cultural Care’s federal tax ID number is 20-2020345

• Dependent Care Reimbursement Programs: The eligibility requirements for these programs (often called “Flex-Spending Accounts” or “FSAs”) are usually identical to those for the Child and Dependent Care Tax Credit.  Please note that expense paid for using Dependent Care Reimbursement Program funds are not also eligible for the Child and Dependent Care Tax Credit

• Flex-Spending Account Paperwork: Cultural Care is happy to provide host families with a summary statement of payments received during a tax year.  We are also able to sign and complete most forms that your plan might require for reimbursement.  Please note, however, that we are only able to provide you either the total amount you paid in a given calendar year, or the amount you paid in a given calendar year with the dates of the applicable full au pair term of service (e.g. one year, six months, etc.).  Cultural Care cannot provide documentation explicitly pro-rating payments received to a specified range of dates.  Contact our office if you require any assistance in claiming a Dependent Care reimbursement

• Withholding for Au Pair Taxes: Because the maximum tax burden for the vast majority of au pairs is less than $1,000, there is no need for the au pair to make quarterly estimated payments.  In addition, because au pair wages are deemed by the IRS to be paid for domestic service in a private home, they are not subject to mandatory income tax withholding on Forms 941 and W-2 by the host family. Host families usually do not need to pay federal unemployment taxes for their au pair or to withhold Social Security and Medicare taxes.  There are some rare cases where this rule might not apply - please refer to our downloadable guide for more details

• Other Potential Host Family Tax and Financial Issues: We strongly recommend that you inquire with a professional insurance advisor about specific state laws and requirements which may include, but not be limited to, workers’ compensation insurance and state unemployment taxes.

Au Pairs that want to file their taxes on their own:

To complete you taxes on your own please read the following tips or click on the link to see an example copy of a Au pair Tax return.

http://infosource.lcc.culturalcare.com/media/167429/tax%20information%20final.pdf

Helpful tips for filling out the 1040NR-EZ

1) Enter only your US source income (au pair stipend) on line 3

2)  Almost all au pairs should have no itemized deductions to list unless

their host family withheld state or local income taxes from their

stipend (very, very rare cases)

3) Enter the current exemption amount. This is a standard amount that

all tax payers can use to reduce taxable income - you can find the

applicable amount in the instructions that came with your tax form

4) Line 16 should almost always read “$0″ as au pair wages are not

typically subject to social security and Medicare taxes because of the

au pair’s status as a J-1 non-immigrant and as a non-resident alien.

In the rare case that an au pair has previously been in the United

States with a F, J, M or Q non-immigrant visa before becoming an

au pair, she might be considered a “resident alien” for tax purposes.

Please check with a tax professional if this is the case

5) Again, the vast majority of au pairs will report “$0″ on line 21

because their host families have not withheld taxes for them, and

because the au pairs have not been making quarterly estimated

payments during the tax year. If either of these cases did happen,

you should enter the appropriate amounts on lines 18 and 19 and

then add them up on line 21

6) If line 21 is greater than line 17 you have overpaid your taxes and

are due a refund. This should be the case ONLY if you paid estimated

taxes during the year or your host family withheld taxes from your

stipend payments. In that case, you can put the total overpaid

amount on line 23a along with your bank account information to

receive a refund from the IRS

7) If line 17 is greater than line 21 (this should be the case for almost

all au pairs), then you need to pay the difference between the two

lines as tax.

Enter the difference on line 25 and follow the directions

in the instruction booklet that came with your form to pay by check,

electronic fund transfer, credit or debit card

 As long as line 25 is less than $1,000 you can put “$0″ on line 26.

If you ended up paying more than $1,000 because your stipend

payment was significantly higher than the minimum amount, you

may have to pay an additional penalty - see the instructions for

more details

9) Remember to sign and date your return! If you used a professional

tax advisor to prepare your form, they should have signed it as well

in the space provided below your signature

10) You need to answer all the questions on Page 2 (”Other

Information”)

11) You should enter your home country on this line

12) The answers to sections C, D and F should almost always be “No”,

but you should always answer all questions truthfully

13) For section E you should write “J-1″

14) In section G you should start with your arrival date at the au pair

school in New York and list any dates when you left the country for

any trips (both personal and with your host family). In the example,

this au pair took a holiday trip outside the country with her family

from December 15 to December 30. You then need to total up all

days in the United States during the tax calendar year and enter

that in section H. Please note that au pairs from Canada or Mexico

can check the appropriate box and skip to section H

15) Au pair stipend wages are generally not exempt under any U.S. tax

treaties so you should usually ignore section J. If you believe there

is an applicable tax treaty with your home country, you should

consult with a tax professional for more detail at:  http://www.irs.gov/businesses/small/international/article/0,,id=96420,00.html

 Below is information I received from Susan Fenwick.  I would like to plan a tour of the downtown college for any au pair who is interested.  It would probably be on a Thursday or Friday but if the school is available on weekends I could see about visiting on a Saturday.

Please email me at sarah.cotton@lcc.culturalcare.com if you are interested in attending this tour.  I plan to schedule it in the next two weeks, so February 23rd- March 12th.

 ”In order for them to enroll in our classes, we would need them to apply for admission first.

The application is free and online at www.jefferson.kctcs.edu<http://www.jefferson.kctcs.edu/>. We have an open admissions policy, so all students are accepted to Jefferson. We do not require TOEFL scores or ACT/SAT scores. Once a student is admitted to Jefferson, he/she does have to take our placement test, called the COMPASS test. This test will assess their skills in reading, listening, grammar and writing. The COMPASS test will determine the students’ placement in classes - college level or pre-college (developmental) classes.

Your students would be able to choose the number of classes they want to take. We have morning and evening classes, and oftentimes afternoon classes as well.  Students with the J-1 visa are not considered Kentucky residents, since their visas are nonimmigrant visas and they are unable to stay in the US indefinitely. Therefore, they would pay the non-resident tuition rate, which is currently $445 per credit hour. Most classes are 3 credit hours each, but some are 4 or 5 credits each. In the fall and spring semesters, payment plans are available so the student can make monthly payments towards their bill. Payment plans are not available in the summer because it is a shorter term.”

Susan Fenwick

International Admissions Officer

Jefferson Community and Technical College

109 E. Broadway

Louisville, KY 40202

Phone: (502) 213-2496

Email: susan.fenwick@kctcs.edu<mailto:susan.fenwick@kctcs.edu>

We met up at Luigi’s Pizzeria downtown off Main street.  The pizza was great!  It was wonderful for the new au pairs to meet some of the other young men and women at our monthly meeting. 

Annika and Christine are the newest to join the KY au pair family.

Save $575 and receive an Amazon Kindle!

Apply for free between February 10, 2011, and February 15, 2011, (a $75 value) to qualify for a $500 program fee discount and, if you make your final au pair selection by March 15, 2011, you will also receive an Amazon Kindle! To be eligible, families must be new to Cultural Care and welcome an au pair by July 31, 2011. Use promotion code PCSNO2011 on your application to take advantage of this special offer, and enjoy the many benefits of hosting an au pair with Cultural Care.

*Terms and conditions apply. Please refer to host family account for more details.

“Make the Switch” and save up to $1,000!

We welcome families from other au pair agencies to repeat with us. As a family experienced with the au pair program, host families who switch to Cultural Care Au Pair are entitled to $1,000 in savings! These savings include a $75 application fee waiver, and a standing $775 program fee discount and free overseas connections (a $150 value). Please call 1-800-333-6056 and select option 2 to receive the promotion code. Families must submit proof of payment of their agency’s program fees (proof of payment of application fee does not qualify). The $775 program fee savings will be applied upon receipt of proof of payment.

$300 Pre-Arranged Match Discount

Families who find their own future au pair are entitled to a $300 program fee discount. The candidate must meet Cultural Care Au Pair’s screening requirements and must complete the Screening & Orientation Day in the appropriate recruitment country. Total savings cannot exceed $650. No promotion code necessary: savings will be applied upon approval of candidate.

Military families save!

Cultural Care Au Pair is proud to support our military. Families of those who are actively serving are eligible to receive an application fee waiver AND a $500 program fee discount. Families can apply using PCMilitary2011, must be new to Cultural Care Au Pair and show proof of their active service.

* To be eligible for the Cultural Care military discount, at least one parent must be a full-time, active member of the U.S. Armed Forces (Army, Navy, Marine Corps, Air Force, and Coast Guard). Proof of active service may be fulfilled with either a valid Military ID issued by the U.S. Department of Defense or a professional reference. Families must be new to Cultural Care and welcome an au pair to their home by October 21, 2011. Discount cannot be applied retroactively and total program discounts cannot exceed $650.

$650 Multiples Discount

Families with multiples can save big! Apply using promotional code PCMUL2011 and enjoy a $275 selection fee waiver and a $375 program fee discount. Families must be new to Cultural Care Au Pair and welcome an au pair by October 21, 2011 to enjoy these savings.

Repeat Families:  Save up to $2,000 in Repeat Family Rewards!

For families who extend with their current au pair:
Families who extend with their current au pair are entitled to a $75 application fee waiver, $275 selection fee waiver and up to $1,650 in program fee savings. Total savings = up to $2,000! Please note: in order to qualify for the reduced program fee with their current au pair, a family must have hosted that au pair for at least 30 program weeks.

For families who welcome a new Cultural Care au pair:

Families who re-apply to host another Cultural Care au pair are entitled to a $75 application fee waiver, a $275 selection fee credit on their account, a $250 repeat family discount, and complimentary overseas connection service ($150 value). Families who apply early enough can earn an additional $250 early matching bonus! Total savings = up to $1,000! For an early matching bonus deadline chart, visit the Host Family InfoSource. No promotion code necessary; discounts are applied automatically.

Host Family Referral Program

We encourage you to refer families you know who may benefit from our au pair childcare program. When a host family you referred welcomes an au pair, you can choose to receive a $250 program fee discount, or cash bonus! Each referred family must be new to Cultural Care Au Pair, have children under the age of 18, and must welcome an au pair by October 21, 2011 for you to be eligible for your bonus.

Cultural Care Au Pair is offering an enormous savings opportunity to new families who apply between November 8, 2010 and December 6, 2010. This is a chance for them to secure childcare for 2011 before the busy holiday begins and save hundreds of dollars at the same time!

 Host families who apply using promo code PCWNTR2011* will receive:

A $75 application fee waiver

(and the opportunity to start matching for FREE)

A $500 program fee discount

The opportunity to lock in 2010 program fee pricing

(a savings of hundreds of dollars!)

 *To qualify for this promotion, families must be new to Cultural Care Au Pair and welcome an au pair by March 31, 2011. A selection fee of $275 must be paid upon final selection of au pair candidate. Total program discounts cannot exceed $650.

Apply for FREE during the month of October

Claire and Laura getting ready for Halloween 2009

In honor of Halloween, we are now offering new families a $75 application fee waiver and the opportunity to start matching with au pair candidates for free. The real treat will be the ability to customize your childcare according to your family’s unique needs once your au pair arrives. To qualify for this promotion, you must apply between October 1, 2010 and October 31, 2010 using promotion code PCAFOCT10, and welcome an au pair into your home by January 31, 2011.

“Make the Switch” and save up to $1,000!

We welcome families from other au pair agencies to repeat with us. As a family experienced with the au pair program, host families who switch to Cultural Care Au Pair are entitled to $1,000 in savings! These savings include a $75 application fee waiver, and a standing $775 program fee discount and free overseas connections (a $150 value). Please call 1-800-333-6056 and select option 2 to receive the promotion code. Families must submit proof of payment of their agency’s program fees (proof of payment of application fee does not qualify). The $775 program fee savings will be applied upon receipt of proof of payment.

$300 Pre-Arranged Match Discount

Families who find their own future au pair are entitled to a $300 program fee discount. The candidate must meet Cultural Care Au Pair’s screening requirements and must complete the Screening & Orientation Day in the appropriate recruitment country. Total savings cannot exceed $650. No promotion code necessary: savings will be applied upon approval of candidate.

$650 Multiples Discount

Families with multiples can save big! Apply using promotional code PCMUL2010 and enjoy a $275 selection fee waiver and a $375 program fee discount. Families must be new to Cultural Care Au Pair and welcome an au pair by December 31, 2010 to enjoy these savings.

Repeat Families: Save up to $2,000 in Repeat Family Rewards!

For families who extend with their current au pair:
Families who extend with their current au pair are entitled to a $75 application fee waiver, $275 selection fee waiver and up to $1,650 in program fee savings. Total savings = up to $2,000! Please note: in order to qualify for the reduced program fee with their current au pair, a family must have hosted that au pair for at least 30 program weeks.

For families who welcome a new Cultural Care au pair:

Families who re-apply to host another Cultural Care au pair are entitled to a $75 application fee waiver, a $275 selection fee credit on their account, a $250 repeat family discount, and complimentary overseas connection service ($150 value). Families who apply early enough can earn an additional $250 early matching bonus! Total savings = up to $1,000! For an early matching bonus deadline chart, visit the Host Family InfoSource. No promotion code necessary; discounts are applied automatically.

Host Family Referral Program

We encourage you to refer families you know who may benefit from our au pair childcare program. When a host family you referred welcomes an au pair, you can choose to receive a $250 program fee discount, or cash bonus! Each referred family must be new to Cultural Care Au Pair, have children under the age of 18, and must welcome an au pair by October 21, 2011 for you to be eligible for your bonus.

 NY Times Article

 August 18, 2010

Looking for Baby Sitters: Foreign Language a Must

By JENNY ANDERSON

1st day of Preschool.

When Maureen Mazumder enrolled her daughter, Sabrina, in a Spanish singalong class a year ago, she hoped it would be the first step in helping her learn a second language. But the class did not seem to do the trick, so Ms. Mazumder decided to hire a baby sitter, one who would not only care for her daughter but also speak to her exclusively in Spanish.

“It was a must that she speak Spanish,” said Ms. Mazumder, who said neither she nor her husband was fluent in the language. “We feel so strongly that our daughter hear another language.”

Ms. Mazumder, whose daughter is nearly 3, has company. Although a majority of parents seeking caretakers for their children still seek ones who will speak to their children in English, popular parenting blogs and Web sites indicate that a noticeable number of New York City parents are looking for baby sitters and nannies to help their children learn a second language, one they may not speak themselves.

That has certainly helped Elena Alarcón, a nanny born in Mexico who attended school in the United States. Ms. Alarcón recently completed 15 interviews with parents living in Brooklyn, and all of them insisted that if hired, she speak only Spanish with their children.

“I thought I would have to speak English with the families,” Ms. Alarcón said. “I was surprised they wanted me to speak only in Spanish.”

Ms. Alarcón now works for Yashmin Fernandes, who became fluent in Spanish living and working in Latin America. Ms. Fernandes speaks in Spanish with her daughter; her husband, who is of Puerto Rican heritage, speaks in English. “His family is the Spanish-speaking side,” Ms. Fernandes said, “but I was more adamant about getting a Spanish-speaking nanny.”

Parents cite different reasons for hiring baby sitters and nannies to speak a second language with their children. Some struggled to pick up foreign languages and want to make life easier for their children. Some believe it makes them smarter. And naturally, this being the melting pot that is New York, many parents have a connection to another language and want to reinforce it.

Simona D’Souza, 38, grew up in Kuwait and Canada. Even though her parents spoke Konkani, the language of Goa, India, to each other, they insisted that their children speak only English. “They didn’t realize it would be beneficial to us to learn another language,” Ms. D’Souza said.

Indeed, not long ago, many parents insisted that their foreign-language-speaking nannies refrain from using their native tongue and speak only English with their children, for fear that another language might muddle their English-language development.

Ms. D’Souza has taken a different tack with her own three children. Her husband is German and speaks to the children exclusively in German. Her nanny of five years spoke only in Spanish with the children. “We would not have hired her if it wasn’t for the Spanish,” she said. Now, she is contemplating putting the children in a French immersion program.

“Once you are trilingual,” she said, “your brain can break down new languages that make it so much easier to learn your fourth, fifth and sixth languages.”

In fact, research shows that learning a second language makes it easier to learn additional languages.

In recent years, a number of neuroscientists and psychologists have tried to untangle the impact of bilingualism on brain development. “It doesn’t make kids smarter,” said Ellen Bialystok, a professor of psychology at York University in Toronto and the author of “Bilingualism in Development: Language, Literacy and Cognition.”

“There are documented cognitive developments,” she said, “but whatever smarter means, it isn’t true.”

Ms. Bialystok’s research shows that bilingual children tend to have smaller vocabularies in English than their monolingual counterparts, and that the limited vocabulary tends to be words used at home (spatula and squash) rather than words used at school (astronaut, rectangle). The measurement of vocabulary is always in one language: a bilingual child’s collective vocabulary from both languages will probably be larger.

“Bilingualism carries a cost, and the cost is rapid access to words,” Ms. Bialystok said. In other words, children have to work harder to access the right word in the right language, which can slow them down - by milliseconds, but slower nonetheless.

At the same time, bilingual children do better at complex tasks like isolating information presented in confusing ways. In one test researchers frequently use, words like “red” and “green” flash across a screen, but the words actually appear in purple and yellow. Bilingual children are faster at identifying what color the word is written in, a fact researchers attribute to a more developed prefrontal cortex (the part of the brain responsible for executive decision-making, like which language to use with certain people).

Ms. D’Souza said that both of her sons lagged their peers by almost a year in verbal development. Her pediatrician recommended speech therapy, and one son’s preschool teacher expressed concern that he did not know the alphabet. But when both started speaking, at around 3 years old, they were able to move fluidly among three languages. She said that her older son tested in the 99th percentile for the city’s gifted and talented program.

“The flexibility of their thinking helps them in nonlinguistic abilities like science and math,” she said, speaking of her children. “But at the same time the normal things - the alphabet - they have trouble with that.”

One arena in which being bilingual does not seem to help is the highly competitive kindergarten admission process.

“It doesn’t give you a leg up on the admissions process,” said Victoria Goldman, author of the sixth edition of “The Manhattan Family Guide to Private Schools.” It is one piece of the bigger puzzle, which includes tests scores, interviews and the ability of a child to follow directions. “Speaking another language is indicative that you are verbal, but you have to be behaved.”

George P. Davison, head of school at Grace Church School, a competitive downtown school, said that bilingualism tended to suppress verbal and reading comprehension test scores by 20 to 30 percent for children younger than 12. “If anything, it can have a negative effect on admissions,” he said.

Ms. Bialystok said that for a child to retain a language, a nanny probably would not do the trick. “It’s an interesting solution; it gives young children a consistent exposure,” she said. “But how long will the nanny be around, and who else will the child use that language with?”

Some parents have taken that into account. Nir Liberboim and his partner hired a Peruvian nanny to speak only Spanish with their son William, who is 1 1/2. Mr. Liberboim grew up in Texas and struggled to become fluent in Spanish because he was taking only a few classes a week. Knowing how hard it is to learn languages at older ages, he wanted to help his son early on, an opinion his partner shares. “We view it as a gift we are giving him,” Mr. Liberboim said.

They have decided to keep the nanny, if she is willing to stay, even after William has started school. “There’s a financial implication to that,” he said, “but we don’t want him to lose it.”

This article has been revised to reflect the following correction:

Correction: August 23, 2010

 An article on Thursday about parents in New York City who are looking for baby sitters and nannies to help their children learn a second language gave an incorrect name for a language of Goa, India, spoken by the parents of Simona D’Souza, a mother whose nanny speaks only in Spanish to her children. It is Konkani, not Konkanese.

Below is the link to the New York Times website.  Interesting article.

 http://www.nytimes.com/2010/08/19/nyregion/19bilingual.html?pagewanted=2&_r=3&ref=todayspaper

Sarah at the World of Good Family Festival

It was an honor to be able to participate in the First Annual World of Good Family Festival.  Check out my booth, pretty cool don’t ya think?  The band, The Howards, had a lovely Bluegrass sound about them. 

It reminded me of my Grandfather.  He would have loved them.  They played during most of the Festival with a few other performances from a majic show group and  Wee Rock singer. 

There were so many interesting vendors, from Jes Deis Photography, Babyology and I even got to meet the Diaper Fairy herself!  All of the booths were geared toward Green Living. 

It was so nice to see all the great ideas that have transformed into vibrant businesses.

The Festival was held at the GreenTree Mall and the staff there were wonderful!  Shout out to Evan from Mall security and Brian at the Hat Rack!  Without them I would have NEVER gotten my WiFi to work.  Yes, I was able to play cool, awesome videos showing how great Cultural Care is with finding Au Pairs for busy families.  Here’s my favorite video from the day:

Happily Ever Au Pair by The Tysdal Family

Aren’t they the cutest?  Several families have put together their own videos about how great their au pair is since joining their family. You can see some when this video ends and you’ll have a few to select from or do a search on Youtube.

It was a great, fun filled day and I look forward to next years Festival. Check out some more pictures from the day below.

The Howards Band

The Diaper Fairy

Tricky Ricky, Tommy Thomas and the Action bros. Majic Show

Heidi Howe of Wee Rock

Lead singer of the Howards

The women who helped make this event happen!