First of all, thanks to everyone who helped me out when I asked my last question about taxes. However, I am still a bit confused. I have been reading up on nanny taxes and it seems to be that if the employer paid the household employee more than $1600 then the employer is responsible for withholding taxes and if they did not withhold they are still responsible at the end of the year. Is this correct? If I did not make that much can I fill out a Schedule C and claim it as self employment? If I can't do that either, is there anything that can help me reduce the amount I am going to have to pay, like deductions and such? This may sound stupid, but does the IRS have a sort of payment plan if I am not able to pay it all back at one time? Thanks so much!