Schedule H

[fl5000]

Hello, I am seeing conflicting responses so I would like confirmation please.  I currently am filing Form 940 throughout the year and paying the related taxes.  Turbo Tax is asking me if I had a nanny/household employee and I believe I can select No, which would exclude the Schedule H on my return.  Please confirm this is accurate.  Thank you!

[Opus 17]

That depends on who you are paying and why?

Form 940 is used to report federal unemployment tax. You don’t file this form unless you are a business and you have a business tax number called an EIN. Generally, if you file form 940, you are also required to file form 941, 943, and/or 944 to report federal income tax withholding for your employees.  

If you have other employees, including a household employee, you may include the household employee on your form 940 but you must also include them on your form 941, 943 and or 944.  In that case, you do not include schedule H with your return.

However, if the household employee is your only employee, and you don’t have a business EIN and you aren’t filing form 941 and 943, then you also may not include the household employee on form 940. You must use schedule H.

[Critter-3]

I agree ... you either use the Sch H for everything  OR  you use quarterly/annual payroll tax forms  but you do NOT do both unless you like paying the taxes twice.  

[fl5000]

Thank you!  

The situation is as follows

• We have one household employee and no other employees
• We file the 940 annually and the 941 quarterly

Based on the above and your answer it seems we can exclude the Schedule H and exclude from the personal return.  Can you please confirm?

[Critter-3]

YES ... you do NOT file the 941/940  AND  the Sch H for the same employee ... it is one or the other.   Hopefully you have also paid any state unemployment taxes as well ... if you have not then find out what you have to do for the state regulations. 

[fl5000]

Thank you all...very helpful!