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I don’t have a live in nanny but I am pretty sure you are not allowed to deduct food and rent that way. You can negotiate a lower hourly rate to sort of account for rent (though anecdotally it is only a few dollars lower, and does not work out to be as much as you would get for renting the place out at market value). However, no one I know (live in or live out) charges nanny for food. If you don’t want to provide food and she buys her own, that’s fine. But if you provide food, that’s typically a free perk/goodwill gesture.