I paid a household employee $9705 in 2019 & I’ve paid $738 in Fed taxes. Why is TurboTax saying that I owe a total of $2264? FUTA tax shouldn’t be more than 6% of 9705.

anyamt · ‎January 20, 2020

MinhT1 · ‎January 20, 2020

The amount you owe on your tax return is not directly related to the Household employee taxes, but is the tax owed on your whole return, including your other income.

The FUTA tax is 6% limited to the first $7,000 of wages for each employee. In your case, the FUTA owed on your employee is $420.

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MinhT1 · ‎January 20, 2020

The amount you owe on your tax return is not directly related to the Household employee taxes, but is the tax owed on your whole return, including your other income.

The FUTA tax is 6% limited to the first $7,000 of wages for each employee. In your case, the FUTA owed on your employee is $420.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

NCperson · ‎January 20, 2020

The FUTA tax is 6% limited to the first $7,000 of wages for each employee. In your case, the FUTA owed on your employee is $420.

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I paid a household employee $9705 in 2019 & I’ve paid $738 in Fed taxes. Why is TurboTax saying that I owe a total of $2264? FUTA tax shouldn’t be more than 6% of 9705.