I've seen a lot of posts where people have complained about Turbotax not reconciling the employer taxes the users have already paid for their nanny's wages with what is getting reported in schedule H. I have followed the instructions to enter in the taxes already paid under "Estimated Taxes". Doing this seems to mostly negate out any taxes owed, however, Turbotax is still assessing that I have an underpayment penalty of $840... then increases it to $940 when I say I will pay by the filing deadline. It seems that that there is still a disconnect in Turbox between recognizing that the estimated payments made with what is being reported in the schedule H.
One more note, mathematically, it seems that TurboTax is implying that I under paid taxes by $63 (after I enter in my state unemployment tax payments already made). Not sure how accurate that is, or if that actually warrants an underpayment fee 13-15X the amount that is due?
