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anyamt
New Member

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.

 
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MinhT1
Employee Tax Expert

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.

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.

**Join us for our "All about the refund" event, sign up here

**Mark the post that answers your question by clicking on "Mark as Best Answer"

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2 Replies
MinhT1
Employee Tax Expert

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.

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.

**Join us for our "All about the refund" event, sign up here

**Mark the post that answers your question by clicking on "Mark as Best Answer"
NCperson
Level 15

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.

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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