We have a household employee (nanny) for the first time in 2019. We use a payroll service to collect and send in our tax obligations on a quarterly basis. It's my understanding that our tax calculation should look like:
A = Taxes we owe as individuals working
B = Taxes we owe for having a household employee
C = A + B = total taxes owed
D = Taxes our employers withheld from our paychecks
E = Taxes we withheld from our nanny's paychecks + employer taxes that we've collected and sent in
F = Total tax payments made
Our refund should equal F - C which is what we filed.
However, IRS came back and adjusted our return to be F - D. So it's saying that our payment we made does NOT include those employer taxes we've sent in. So now it's like we're paying those taxes twice. Do I call the IRS? Anyone have any ideas of how to correct this? Is there something I could have missed in our filing, or a disconnect on the IRS side?
