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How do you enter Au Pair Social Security Income as Zero (Exempt) Without Generating an Error Message?

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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4 Replies
MaryK4
Employee Tax Expert

How do you enter Au Pair Social Security Income as Zero (Exempt) Without Generating an Error Message?

In the Household Employee section, you can indicate Social Security, Medicare, and Withholding.  See below.

 

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sjones64
Returning Member

How do you enter Au Pair Social Security Income as Zero (Exempt) Without Generating an Error Message?

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:

 

Screen Shot 2023-02-12 at 9.19.33 PM.png

 

How do I proceed?

sjones64
Returning Member

How do you enter Au Pair Social Security Income as Zero (Exempt) Without Generating an Error Message?

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.

How do you enter Au Pair Social Security Income as Zero (Exempt) Without Generating an Error Message?

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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