How do you enter taxes already paid on your Schedule H for a household employee? I'm not getting prompted for tax paid in the "Nanny & Household Employee Tax" prompts.

[andrew.poker]

This is our first year with a household employee. In the "Uncommon Tax Situations" I used the "Nanny and Household Employee Tax" thread to fill in our Schedule H information about what we paid our Nanny and the related employer taxes due. However, we have paid these as we go through our payroll provider so there shouldn't be any net new tax liability from this. I can't figure out where to enter the taxes paid in Turbotax. Since TT dosen't have that information, it is calculating our tax liability as if we didn't pay any of this already, which is materially inflating our tax liability incorrectly. Does anyone know how to tell turbotax what we already paid so it can properly calculate our liability? If we already paid this, should we just not be filling out a Schedule H at all?

[KeshaH · Accepted solution]

You would enter these payments as estimated tax payments.

1. Log into your TurboTax account. On the Tax Home screen, choose Deductions & Credits and click Review/Edit or Pick up where you left off.

2. Scroll to Estimates and Other Taxes Paid and choose Start next to Estimated Tax Payments.

3. On the next screen, choose Start next to Federal estimated taxes for 2024 (Form 1040-ES).

4. Choose yes, and then enter the payments you made and the corresponding dates.

[andrew.poker]

That worked perfectly - thank you.

[eclairebb]

Do you then still answer the questions to file 1040 Schedule H even though one has already been filed by a payroll service?  Or do you answer the questions as if you don't have a household employee?

Thanks!

[AmyC]

Yes, if you have a household employee, Sch H will capture all the taxes that should be paid. You issued a w2 connecting your information and the employees. It needs to all come together here.

Then, any taxes you have already paid are captured as Kesha stated above. This means you will not be paying the same tax again.

[jiminrb]

I have the same issue, Household Employer Taxes Already Paid but I can't find where to claim the payments.

I followed the link given to report the household taxes I already paid, however, the Estimated Taxes Paid  explanation of what type of issues this covers, it says things like Alimony, Gains from selling stocks, interest and dividend income. This seems like it's for money I earned but no taxes were taken out so I paid  Estimate Payments on my own. Not for Household Employer taxes paid. do I enter the Household Employer taxes paid here anyway?

[IsabellaG]

Yes, you will enter your payments in the Estimated Taxes Paid in order to get credit for those payments against your total tax, which will include the tax from Schedule H.