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Level 2
June 6, 2019
Solved

Am I able to deduct federal/state taxes I paid for my nanny from my own taxes? Also, do I have to report this on my own tax return despite using a payroll service?

  • June 6, 2019
  • 6 replies
  • 58 views
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Best answer by

No, you can't deduct these payment. You have paid a tax on wages so you would not pay them again. The purpose of Schedule H is to be able to include your tax liability to the IRS on your 1040 rather than having to make quarterly payments. Since you did make them, ignore the Schedule H and enter your payments following the steps below.

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 2014 (Form 1040ES)"


6 replies

Answer
June 6, 2019

No, you can't deduct these payment. You have paid a tax on wages so you would not pay them again. The purpose of Schedule H is to be able to include your tax liability to the IRS on your 1040 rather than having to make quarterly payments. Since you did make them, ignore the Schedule H and enter your payments following the steps below.

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 2014 (Form 1040ES)"


tinamisuAuthor
Level 2
June 6, 2019
Thank you, @TurboTaxColeen!!
Level 2
March 17, 2021

Can I include the employer portion of payroll taxes (ie Employer FICA and Medicare along with FUTA and SUTA) ad part f my child care cost?  Are these payments deductible on my Federal Tax return?