Household Employee / Nanny: how to enter STATE taxes due?

[mikemc109]

I have a nanny and have entered Schedule H as well as the estimated tax payments I've already made for both federal and state.  However, I am having trouble finding how where/how to enter the State tax liability.  In other words, is there something like a STATE version of Schedule H where I can enter estimated State Taxes (for Maryland)? For FED, adding Schedule H and the corresponding FED estimated taxes paid balances out. But when I add estimated State Taxes paid (the amount that was payed by my payroll company to Maryland quarterly on my behalf), the State refund is increased, which isn't correct.  It needs to be balanced out by entering the tax liability somewhere, but I can't figure out where.

[mikemc109]

Or do I simply NOT enter any State nanny tax liability NOR any of the state estimated tax payments I already made?

[gloriah5200]

Please clarify the state you are residing in?

[mikemc109]

Maryland. Thanks.

[AmyC · Accepted solution]

The federal schedule H is to handle the Medicare and Social Security taxes that an employer must pay. There is no state equivalent to that.

You are not required to withhold state wages on an employee. If you did, that would have been reported on their W2 and you would have paid it to the state as an employer, as part of the withholding tax.

Business Taxes| Employer Withholding - Comptroller of Maryland

You do not report state tax regarding your nanny on your MD personal return.

[MPG50]

I have this issue in Massachusetts.  A W2 was filed and federal and state withholding, unemployment and PFML taxes and filings were paid.  The question is where in the TT program can you enter the payment information so this can be deducted from the income tax owed?  It seems clunky to do it in the estimated tax section.

[AmyC]

If you are the employee, everything you need is on the form.

If you are the employer, you don't get to deduct federal and state taxes your employee paid. You will probably take allowed deductions on your sch H.

Start here to determine what is right for your circumstances:

• 2021 Schedule H (Form 1040) - Internal Revenue Service. 
• 2021 Instructions for Schedule H - IRS 

Note: Rules for Business Employers- Don't use Schedule H if you chose to report employment taxes for your household employees along with your other employees on Form 941, Employer's QUARTERLY Federal Tax Return; Form 943, Employer's Annual Federal Tax Return for Agricultural Employees; or Form 944, Employer's ANNUAL Federal Tax Return. If you report this way, be sure to include your household employees' wages on your Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return.

@MPG50