If you are
e-filing your return, you will need to fill out Schedule H in TurboTax so that
it is transmitted with your return. If you are going to mail in your
return, just include the paper copy of Schedule H prepared by the payroll
company.
Schedule H will
calculate the Household Employment Taxes you owe, but you also need to enter
the tax payments you paid under "estimated taxes."
To prepare a Schedule H in
TurboTax, please follow these steps:
- Type "nanny tax" in the Search box (upper right of program)
and click the 'Jump to' link
- Answer Yes to Did You
Have a Nanny or Household Employee and follow the TurboTax interview
To Enter tax payments,
follow these steps:
Federal withholding
is reported in the process of preparing Schedule H. To report any Federal/state/local tax payments you made, please follow these
steps:
- After you finish entering
your information in the Nanny and Household Employee Tax section,
- In the Search box (upper right of program)
search "estimates paid" and select the "Jump to" link from results
- On the next screen, click on
the Start/Revisit box next to Federal/State [or Local] estimated taxes for 2016.
- Enter your payment(s) on the
next screen, How much did you pay in
Federal/State [or Local] estimated taxes?
NOTE: If you filed a 940/941 and paid the tax, you do not file a schedule
H at all. See IRS Pub 926 page 11: https://www.irs.gov/pub/irs-pdf/p926.pdf
Business employment
tax returns. Don't use Schedule H if you choose to pay the employment
taxes for your household employee with business or farm employment taxes.
Instead, include the Social Security, Medicare, and withheld federal income
taxes for the employee on the Form 941 or Form 944 you file for your business
or on the Form 943 you file for your farm. Include the FUTA tax for the
employee on your Form 940.
