Nanny with Schedule H

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I have a nanny who works in my home. I use SurePayroll to complete all of her and my tax documents. They have prepared her W2 and my Schedule H form. Which TurboTax product should I choose?

TurboTax

DawnC

Employee Tax Expert

In order to file a tax return with a Schedule H, you will need TurboTax Deluxe or higher. All TurboTax personal versions (except TurboTax Free Edition and TurboTax Live Basic) handle Schedule H, Household Employment Taxes. Here's how to fill one out:

Open or continue your return in TurboTax.
Search for household employee taxes, sch h (use this exact term including the comma and space).
Select the Jump to link at the top of the search results.
Answer Yes to Did You Have a Nanny or Household Employee? and follow the instructions.

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shsw09aa

Level 2

Hi, I have Turbotax Home and Business version, I tried to follow your recommendation for the sch H. It didn't work. Do you know if Turbotx Home and Business can let me fill out schedule H if I am e-filing?

Thanks,

H Jenny Anderson

[email address removed]

DawnC

Employee Tax Expert

Thank you so much, I won't enter anything on form 1040 then. Do I still answer YES to Did You have a Nanny or Household Employee? and follow the instructions to the next page if I don't enter anything on the Social Security Tax, medicare and income tax withholding?

You should prepare the Schedule H unless the payroll company filed the appropriate payroll tax forms (940/941). It depends on whether or not you pay them for that service. If they file the payroll returns for you, you can skip the Schedule H and answer No to the nanny question. You can verify it with them if they did or not.

If they only prepare the Schedule H, then you should enter the Schedule H on your return so that it gets filed and then enter the taxes you paid in the Estimates Paid section of TurboTax. When you enter the amounts you already paid, you won't pay them again. Sorry for the confusion! To enter the taxes paid in TurboTax:

After you finish entering your information in the Nanny and Household Employee Tax section,
In the Search box (upper right of the program) search "estimates paid" and select the "Jump to" link from results
On the next screen, click on the Start/Revisit box next to Federal - State - Local estimated taxes for 2019. Federal, state and local are each reported on separate line items.
Enter your payment(s) on the next screen, How much did you pay in Federal -State - Local estimated taxes?

If you (or the payroll company) filed a 940/941 and paid the tax, you do not file a schedule H at all. See IRS Pub 926 page 11: https://www.irs.gov/pub/irs-pdf/p926.pdf

@shsw09a

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