According to the IRS, my J-1 visa holding Au Pair's wages are taxable for federal income tax, but those wages are not subject to Social Security and Medicare witholding. But when I enter her taxable wages as $X amount and then her Social Security wages as "Zero" into the Household Employee section of TurboTax, it keeps coming up on review as an error and won't let me file electronically. I'm not keen on spending an extra $1000+ just to make the program happy so I can file online. Help!
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In the Household Employee section, you can indicate Social Security, Medicare, and Withholding. See below.
I have the same question; according to the IRS:
"Au Pair wages are essentially in the nature of household employment."
...
"Au pair wages are not usually subject to social security and Medicare taxes because of the au pair's status as a J-1 nonimmigrant and as a nonresident alien."
I expect to enter 0 for both "Wages subject to Social Security Tax" and "Wages subject to Medicate Tax." However, when I do so, I get this error:
How do I proceed?
Maybe if we didn't withhold their income taxes, we don't have to report them as household employees? That's what point 7 seems to suggest here:
7. Is Schedule H (Form 1040) required to be filed by the host family? According to the IRS, Schedule H is required for reporting wages of $2,200 or more paid to a domestic worker. However, families are only required to file the form if they withheld income taxes or paid wages that are subject to Social Security Taxes, Medicare Taxes or Federal Unemployment Taxes. Since payments to the au pair are not considered wages for the purpose of Social Security Taxes, Medicare Taxes or Federal Unemployment Taxes, you are not required to fill out the Schedule H if you do not withhold income taxes from your au pair’s wages.
No. According to the IRS, Schedule H is required for reporting wages of $2,200 or more paid to a domestic worker. However, families are only required to file the form if they withheld income taxes or paid wages that are subject to Social Security Taxes, Medicare Taxes or Federal Unemployment Taxes. Since payments to the au pair are not considered wages for the purpose of Social Security Taxes, Medicare Taxes or Federal Unemployment Taxes, you are not required to fill out the Schedule H if you do not withhold income taxes from your au pair’s wages.
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