FiCA tax exemption for domestic services

Generally, no. Under IRS Publication 926, domestic services performed by a parent for their child are exempt from FICA (Social Security and Medicare) taxes only if certain conditions are met regarding the care of a grandchild or a disabled child under age 18. However, the "parent-child" relationship for FICA exemptions typically applies only to biological parents, adoptive parents, or stepparents if the employer (the stepdaughter) is a legal minor. In your case, because the employer is an **adult stepdaughter**, the stepparent is considered a household employee subject to FICA taxes if their annual wages exceed the threshold ($2,700 for 2024). The IRS does not categorize a stepparent as an exempt "parent" for domestic services provided to an adult child in the same way it might for a minor child. Therefore, if the adult stepdaughter pays the stepparent for household work, and the payment exceeds the annual threshold, FICA taxes must be withheld and paid. If there is a specific legal adoption or unique state-level dependency status involved, I am unsure of the impact without further detail, but under federal standards, these wages are taxable.