Schedule H - Withholding

[oto]

Hello!

I'm attempting to input withholding made by my payroll company during 2021 for a nanny. Unfortunately, TurboTax does not have fields which allow me to input social security and medicare payments made during 2021 and were detailed in Schedule H completed by my payroll company. I was able to enter the "Federal income tax withheld, if any" on the Nanny and Household Employee Tax screens.

Any assistance you all can provide would be much appreciated.

[RobertB4444]

TurboTax is automatically computing the FICA for your employee (social security is 6.2% and medicare is 1.45%)  You shouldn't need to enter these amounts, only verify what was already paid on your behalf by the payroll company if anything.

[oto]

Based upon my draft return, it seems as though TurboTax is significantly understating the withholding made for SS and Medicare related to my household employee. The increased amount of projected tax owed is just about equal to the amount withheld. 

[AmyC]

Yes, the employee pays half and the employer pays half, That is how the tax works. See Do I have to pay taxes on what I pay to my Household Employee?

[oto]

Completely agree! As the employer, my payroll company withheld amounts and made payments the IRS on my behalf. My question is this: how do I get these additional amounts reflected on my return?

[AmyC]

Usually only FUTA is paid during the year for a household employee. All taxes are then paid using the sch H for the employee and employer. If you paid more than $1,000 in any quarter, you do not file sch H.

See:

 2021 Schedule H (Form 1040) - Internal Revenue Service.

2021 Instructions for Schedule H - IRS 

and verify that this form is required. Also, verify that you paid Medicare and Social Security tax through the payroll provider rather than the standard Unemployment.

[oto]

Getting closer!

Just talked to my payroll company and they confirmed that the total of quarterly estimated payments was equal to the total amount of taxes due for my nanny's employment in 2021 (federal, ss, medicare, and FUTA). So, I went ahead and input the actual estimated payments made to the IRS, but I'm not sure whether I should input an amount in "Federal Income Tax Withheld, if any" when filling out the Nanny section on TurboTax. I'm inclined to enter 0, since the federal withholding was included in the estimated payments made and I don't want to "double-count" and overstate the amount of payments made to the IRS in 2021. Any additional help you could provide would be much appreciated! 

[Critter-3]

If you already had a payroll company complete and file the W-2/W-3 (along with the annual and quarterly filings)   then you do NOT ALSO file a Sch H unless you like paying the taxes twice.  STOP trying to complete a Sch H for what has already been filed.   The Sch H is ONLY for those not already using a payroll company.

[oto]

I believe that Schedule H is required even though estimated payments were made by my payroll company. But you are right that the calculation of taxes due will be overstated by TurboTax if one fails to include the amount of estimated payments made towards 2021.

Lastly, I did confirm that you should include the amount of federal withholdings on the Schedule H. When I did that, the amount owed matched exactly the amount on the Schedule H prepared by my payroll company. 

[jamescracken]

How do I make sure my Schedule H reflects the taxes withheld and the employer taxes already paid?  I used a payroll company for my nanny and have already made all the required payments.  I can't figure out how to enter the amounts I have already paid in Turbo Tax (all I can figure out is the federal income tax withheld, which I have already entered).

[oto]

I’d request a Schedule H from your payroll company. Good luck!

[RobertB4444]

When you enter the total amount paid the system will automatically compute the social security and medicare so you don't need to enter that.  Only the income tax withheld which you already entered.  

If you would like to view the schedule H before you file it in order to make sure that the numbers match the one that the payroll service created then - if you are using TurboTax desktop - you can just click the forms button in the top right corner and scroll down to schedule H.  

If you are using the online version you need to finish your return and pay for the software and then you will be able to view or print your return BEFORE you file it.  That will create a pdf of all of the forms and you can look at the schedule H to see if it all matches.

@jamescracken 

[amshroder]

Did you get this issue resolved? I'm having the same exact problem and can't figure out how to have TurboTax take into account the taxes already paid to the IRS on my behalf from my payroll provider. 

[DMarkM1]

Yes, you are correct.  The Schedule H only calculates what payroll taxes are due (social security/medicare/unemployment/income tax withheld).  You will need to enter your payments separately as estimated taxes paid. 

Enter your payments in the "Deductions & Credits" section using the "Estimates and other taxes paid" topic.  Start/Revisit the "Estimated Taxes" topic and enter the dates/amounts of the quarterly payments made by your payroll company on your behalf. 

[scurling]

I've been on this merry-go-round with the Schedule-H and filing employee and employer taxes.

You MUST file the full amount of annual taxes with your Form 1040.  The schedule H instructions states this in a single line statement, so it is easily missed.  Completing the Schedule-H form with TBTx calculates those taxes for you and allows for your state unemployment payments.  It does NOT allow for the state withholding taxes on the form.  My state, Virginia, requires me to pay withholding taxes on a quarterly basis, but the federal taxes, need to be withheld and paid with the Form 1040 filing.

Believe, me, I payed employee and employer quarterly federal taxes for two years, and also had to pay the entire tax amount with the Form 1040,  Schedule-H  submission.  This was basically a "double-taxation".  I finally had to hire a CPA to work with the IRS and develop a way to recoup/refund the quarterly takes I paid for two years.  The process is slow, and I've currently been refunded for 2 of the 8 quarters.