You should prepare the Schedule H unless the payroll company filed the appropriate payroll tax forms (940/941). It depends on whether or not you pay them for that service. If they file the payroll returns for you, you can skip the Schedule H and answer No to the nanny question. You can verify it with them if they did or not.
If they only prepare the Schedule H, then you should enter the Schedule H on your return so that it gets filed and then enter the taxes you paid in the Estimates Paid section of TurboTax. When you enter the amounts you already paid, you won't pay them again. Sorry for the confusion! To enter the taxes paid in TurboTax:
- After you finish entering your information in the Nanny and Household Employee Tax section,
- In the Search box (upper right of the 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 - Local estimated taxes for 2019. Federal, state and local are each reported on separate line items.
- Enter your payment(s) on the next screen, How much did you pay in Federal -State - Local estimated taxes?
If you (or the payroll company) 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
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