Nanny Tax Schedule H in TurboTax

[WingsOfZion]

We hired a nanny for all of 2021 and we managed her payroll via a payroll company SurePayroll who withheld her taxes for us and paid them to each government agency on our behalf all year each quarter. We were given a Schedule H form which details all the taxes withheld and paid. When filing in TurboTax  the household employee section is not asking me questions outside of how much unemployment and federal taxes we withheld. It doesn’t ask about the Medicare, Federal, social security taxes we withheld and have already paid and instead is added those numbers to the total taxes due, but we paid these taxes and I’m confused as to where in Turbax I can enter that these taxes were indeed withheld and paid and are not due. 

[MaryK4 · Accepted solution]

In TurboTax, you must enter the payments as Estimated payments and they will get applied correctly to submit to the IRS.

If you made estimated tax payments in 2021 towards your federal, state, or local taxes, enter them in the Estimated and Other Income Taxes Paid section.

1. With your return open, search for the term estimated tax payments
2. Select the Jump to link
3. Choose Start next to the type of estimated tax payment you'd like to enter
4. Enter the amount of estimated tax you paid at each of the quarterly due dates

[KKV9]

Thank you. So add both Estimated Taxes under "Estimates" and also enter Schedule H details under "Nanny and Household Employee Tax" of Other Tax situations? Correct? 

I suppose this will add 'zero' to the Tax owed? 

[WingsOfZion]

Yes it did. The exact amount TurboTax calculated that I owed matched what the sum of the four payments I made quarterly,  recorded on my 1040-ES statements. So it zeroed out. 

[KKV9]

Thanks for the clarification. Who provides 1040-ES? Payroll company?

[AliciaP1]

No, the 1040-ES form is where you enter your payments. See the response above from Tax Expert @MaryK4 for specifics to get to the forms within TurboTax.

[acollier10]

Thank you, this is very helpful. It was driving me nuts trying to figure out why it wasn't asking me. To confirm, we enter estimated payments for both state and federal AND for both employee/employer (since we withheld them)? I use Homepay and it breaks it down. 

[ThomasM125]

You enter the total of the estimated taxes that you paid in the Estimated Taxes section of TurboTax. If the correct amount was paid in, it will agree with the total tax listed on schedule H. If not, then you will pay the balance in or get a refund as part of your tax due or refund when you file your income tax return.

[pedromaiz]

Hello, 

I saw your post on the Nanny Payroll using SurePayroll. Did you end up sending the Schedule H from Surepayroll or did you let Turbotax create one and you added the estimates.  I'm glad you asked the question because it was started to drive me nuts.  I used HR Block last year, and they they didn't include the estimtes so ended getting back a big check from IRS.  

[acollier10]

I have a schedule H from Homepay BUT TurboTax didn't allow me to upload it, it just asks for a few numbers which didn't seem right - so the based on the advice above, I went and added estimated payments too. Is that correct? So confusing. 

[AliciaP1]

Yes, report any quarterly payroll tax payments you have made through 2021 with the estimated tax payment section.

@acollier10

[pjbluvas]

Hi I used this thread when completing my 2021 taxes. So thanks to all who contributed.

My Q is whether we should be entering the estimated tax payments for (Federal only) or (Federal + state) into TT. I noticed on Schedule H line 8d the Federal estimated payments are accounted for but I do not see state payments anywhere on Schedule H.

Thanks!

[Critter-3]

If you used a payroll company and paid all the fed/state/FICA taxes thru them then you do NOT also file a Sch H on the personal tax return ... why do you want to pay the taxes twice.   Confirm with the payroll company that they have already filed all the payroll tax reports for you.   The Sch H is used in lieu of filing the forms 940/941/state payroll tax forms for those folks who do NOT employ a payroll company. 

[pjbluvas]

The Payroll company (Sure Payroll) generates a Schedule H form but they do not file it. I enter the info into TT and include it when I file my return. The Payroll company does make payments to state and IRS on my behalf for estimated taxes. 

[Critter-3]

@pjbluvas 

I think you may be confused as to what they did and what you need to do ... the mock Sch H may be for informational purposes only so please check with the payroll company for specific instructions on what to do.