How to file caregiver withholdings

[Harvest22]

My brother and I have been taking care of our aging parents for the past 3+ years, and as of this week, both are now deceased. During that time, we paid a caregiver to help us and withheld taxes, but we have not filed or paid those taxes (2021-2023). I know exactly what we paid and withheld each tax year, but how do I file and pay those taxes now?

[Vanessa A]

You would need to file Schedule H, which is done with your tax return to report and pay household employee taxes.  You will also need to obtain an EIN. 

To file and pay employment taxes using TurboTax when you file  your return, you will select the following:

1. Federal
2. Other Tax Situations
3. Nanny and Household employee Tax
4. Walk through and answer the questions as appropriate.

You will need to Amend Your Returns for any years already filed and take the above steps to add the Schedule H and pay the taxes.  

Be aware, you may be subject to fines and penalties as you would have an underpayment penalty as well as a failure to pay the taxes you withheld penalty. Having withheld taxes from your employees but not paid them can create legal issues for you so it is best to get this fixed as soon as possible.  

What is Schedule H

Employment Tax Enforcement