How do I get TurboTax to acknowledge that I already paid taxes for my nanny?

[gracel21]

how do i add that i have already paid the household employee taxes as shown on line 26 of schedule h that i received from my online payroll company?

[JamesG1]

Have you paid a third party who then pays the household employee wages and employment taxes?  If so, you are not required to file Schedule H.

The Instructions for Schedule H page H-3 states:

If a government agency or third-party agent reports and pays the employment taxes on wages paid to your household employee on your behalf, you don't need to file Schedule H to report those taxes.

@gracel21

[everythingisfree]

We are in the same situation-- we received our Schedule H from our payroll company Nannychex, but the input on TurboTax was incorrect. I see the instructions above that, in line with IRS guidelines, "If a government agency or third-party agent reports and pays the employment taxes on wages paid to your household employee on your behalf, you don't need to file Schedule H to report those taxes."

However, the payroll company remitted our quarterly federal tax payments for the nanny. So, I entered those quarterly tax payments as our estimated payments we'd made. Do I now have to enter all the Schedule H information in the "Nanny and Household Employment Tex" section? If not, does the IRS already have the Schedule H information they need from the payroll company? I just want to know what I need to do to compete our return accurately. Thank you.

[PattiF]

You can delete your Schedule H from your return as long as your payroll company has filed all required federal returns associated with your domestic employee.  The purpose of Schedule H is to ensure the payroll taxes are paid and the income is reported to the IRS.  Since filing Forms 941, 940, and W-2 accomplishes this goal you are not required to also file a Schedule H.

The payroll company remitted the quarterly federal payments(Form 941). They should have also filed Form 940 (Unemployment Tax) and the W-2.  It is not necessary to file a Schedule H.

@everythingisfree 

[everythingisfree]

Thank you. I just received further instructions from Nannychex for TurboTax users. They say that we need to fill out the Schedule H in TurboTax so it is transmitted with our return, and that we also must enter the estimated tax payments that this payroll service made for us. Does this sound accurate from a tax-law perspective to you?

[HopeS]

Yes, if you pay federal and most likely state, unemployment taxes you should report this in the Schedule H Interview under "Wages and Withholding". While going through the interview you will answer Yes, to paying more than $2,400 in wages and withholding Federal Income Tax.  You will then navigate to "wages and withholding"  as illustrated in the screenshot below:

@everythingisfree 

[RTDC14]

Hi - just curious where you entered the estimated tax payments?  I'm running into this Schedule H issue too since my payroll provider paid estimated quarterly amounts.  But TT is not factoring those in, so my tax bill is inflated by a significant amount.  Any insight into how you resolved would be very helpful!

[PattiF]

To enter the federal estimated payments:

• Go to Federal on the left side of TurboTax Online
• Click on Deductions and Credits at the top of the page
• Scroll down to Estimates and Other Taxes Paid
• Select Estimated Taxes Payments- click the Start button
• Select Estimated taxes for 2022, click Start, and follow the prompts

Please see this TurboTax help article for information.

@RTDC14