Should I enter my schedule H (regarding nanny) info if my payroll service already remitted her taxes and I already entered that into 'federal estimated taxes'?

[RobertG]

No, you should not file a Schedule H if your payroll service already remitted her taxes.  

Schedule H allows you to pay your Payroll taxes with your Form 1040.  

"If a government agency or third-party agent reports and pays the employment taxes on wages paid to your household employee on your behalf, you don't need to file Schedule H to report those taxes." Please see; 2019 Instructions for Schedule H Page H-3.

[pugetsound12]

hmmm...I asked the payroll company and they said they make the payments to the "IRS as 1040 estimated payments, so you do need to file the Schedule H and also enter the federal payments on your tax return as 1040 estimated payments". Any thoughts?

[ColeenD3]

Yes, to the question about entering them in Estimated Payments.

No, to the question about Schedule H. As stated before, Schedule H is for paying those same taxes that you have already paid as a tax on your Form 1040.

In order to indicate the taxes you have paid already during the year for your household employee (or others), you need to:

1. Go to "Deductions + Credits" (on the top bar)

2. Select "Estimates and Other Taxes Paid"

3. Select "Estimates"

4. Under "Estimated Tax Payments", select the first option "Federal estimated taxes for 2019 (Form 1040ES)"

And there you can enter the payments you have made during the year (each quarter).

[pugetsound12]

I think this question needs to revisited. A CPA told me that since the payroll service didn't submit a 940 or 941 (as they make them as estimated 1040 payments) i need to file schedule H. Any other experts have opinions?

[ColeenD3]

So what did the payroll company actually do? Did they withhold taxes. Did they give her the full amount as if it were a 1099-Misc? They don't make them as 1040 estimated payments. You would have to do that if they did not file the forms and pay in the withholding. 

First you have to know exactly what it is they did.

[pugetsound12]

They withhold the money from the nanny, then pay it to the irs at the end of the quarter.

They told me that they: "make the payments to the IRS as 1040 estimated payments, so you do need to file the Schedule H and also enter the federal payments on your tax return as 1040 estimated payments"

[RobertG]

Yes, you should file Schedule H and pay the employment tax with your 1040, as long as your payroll service is not filing the Forms 940 and 941.