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mmcmahan222
New Member

I ann a sole proprietor. My schedule C deductions won't match my W-3, since I also paid a nanny in 2017, and that's not a business expense. How should I handle this?

 
1 Best answer

Accepted Solutions
DianeW
Expert Alumni

I ann a sole proprietor. My schedule C deductions won't match my W-3, since I also paid a nanny in 2017, and that's not a business expense. How should I handle this?

Enter the appropriate wages and payroll taxes that belong to the business on Schedule C.  

Enter the gross wages paid to a nanny under child care expenses.  You can include your share of the social security and medicare taxes paid, if applicable.  

  1. Sign into your TurboTax account.
  2. Select Federal in the black navigation panel on left
  3. In the Search box, upper right, type child care expenses > Jump to child care expenses

Do not include a Schedule H in your return because this is only required if an employer report for employees has not been filed.

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3 Replies
DianeW
Expert Alumni

I ann a sole proprietor. My schedule C deductions won't match my W-3, since I also paid a nanny in 2017, and that's not a business expense. How should I handle this?

Enter the appropriate wages and payroll taxes that belong to the business on Schedule C.  

Enter the gross wages paid to a nanny under child care expenses.  You can include your share of the social security and medicare taxes paid, if applicable.  

  1. Sign into your TurboTax account.
  2. Select Federal in the black navigation panel on left
  3. In the Search box, upper right, type child care expenses > Jump to child care expenses

Do not include a Schedule H in your return because this is only required if an employer report for employees has not been filed.

mmcmahan222
New Member

I ann a sole proprietor. My schedule C deductions won't match my W-3, since I also paid a nanny in 2017, and that's not a business expense. How should I handle this?

And it's ok for just the SUM of those two amounts to match my W-3? Even though it says in the business employee wages section that the amount (business employee wages only, not including nanny) must match my W-3?
DianeW
Expert Alumni

I ann a sole proprietor. My schedule C deductions won't match my W-3, since I also paid a nanny in 2017, and that's not a business expense. How should I handle this?

@mmcmahan222 Yes.  If you are questioned you will have all the documentation to support your employer reports, and the figures you use do match your W3 when combined.
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