Can I Deduct Health Insurance Premiums for My Nanny?

Yes, for tax years 2010 through 2013, the maximum credit available is 35% of your eligible insurance premium.

The following three conditions need to be met:

  1. You must have fewer than 25 full-time employees or a combination of full- and part-time employees
  2. The average annual wages of all of your employees must be less than $50,000.
  3. You must pay at least half of the insurance premiums.