Schedule H - Withholding

[scurling]

Oto:

If you haven't resolved this issue, see my posting at the bottom of the thread.

[kgaro113]

This is my exact situation. We use Poppins Payroll for 1 Quarter in 2023. We paid all New York State unemployment taxes, other state taxes, and federal taxes already back in April/May 2023 when we closed out our account with Poppins. Poppins also provided me a pre-completed schedule H. The amounts paid already equal what's on the Schedule H exactly in some cases and almost exactly in others and match what TurboTax thinks I "owe." 
However, I noticed the line on Schedule H that if I'm required to file a 1040 (I am) that I should NOT file schedule H but should use the info from their Schedule H on Schedule 2 and 3 instead.
TurboTax doesn't seem to have any way to enter the data from the Poppins Schedule H in Schedule 2 or 3. No clue what I'm supposed to do here.
Any advice on how people worked through this? Thank you so much.
Any 

[amshroder]

I used poppins payroll as well.  I found advice that seemed to solve it for me by entering the total of the estimated taxes that you paid in the “Estimated Taxes” section of TurboTax. I think if I recall correctly I found this in the “other tax situations section.  If the correct amount was paid,  it will agree with the total tax listed on schedule H. If not, then you will pay the balance or get a refund as part of your tax due or refund received when you file your income tax return.

[kgaro113]

Thank you so much @amshroder 

Did you just ignore the note on Schedule H that says you should use Schedule 2 & 3 instead if you’re filing a 1040? 

[DawnC]

Follow these steps to find Schedule H in TurboTax:

1. Open or continue your return in TurboTax.
2. Search for household employee taxes, sch h (use this exact term including the comma and space).
3. Select the Jump to link in the search results.
4. Answer Yes to Did You Have a Nanny or Household Employee? and follow the instructions.   @kgaro113 

[scurling]

My guess is the IRS will flag the "estimated taxes" you entered, and come back with additional taxes owed.  They did that to me in 2020,  my first year of having domestic employment,  when I didn't know how to account for the out-of-pocket taxes I paid and the employer.  I filled in the estimated taxes I paid for each quarter, but the IRS basically discounted it and sent me a bill for additional taxes owed.

The IRS did this last year, 2023, three years after the 2020 filing.  You can imagine my surprise !  🙂

[scurling]

I'm not sure I read the instructions that way.  The information on the Schedule -H does end up on the 1040 schedules also, but everything I read says if you file a 1040, you need to attached the completed Schedule-H with the submitted package.

TurboTax does have a few quirks with the Schedule-H which prevented me from E-Filing the 1040 and state forms.  The IRS rejected my 1040 with my name as the employer, since it was not associated with the filed EIN number.  When I set up the EIN, I used a "business name", as I though was required.

The issue is TbTx automatically puts your name from the 1040 info onto the Schedule-H as the employer.  I had to "override" that entry and put in the business name, so it wold match the IRS records.  TbTx flags the override and doesn't allow E-File submission.  I had to mail in all the tax forms, federal and state.

[scurling]

After submitting my comment, I realized I may have been conflating my payment experience with yours incorrectly thinking they were similar, as far as the "estimated taxes" payments were submitted.

If you filed estimated tax payments throughout the year to cover the annual tax requirements based on the Schedule-H, I think you will be fine.

My experience was I filed quarterly tax payment as a business, and not associated with my personal 1040 tax requirements.  The IRS sees personal 1040 requirements and business tax requirements completely different, and my tax payments under the "business" were never associated with my personal 1040 tax requirements.

[kgaro113]

Is there a better way to do it @scurling?

Had you used a payroll service to do the withholding etc? What was the difference in cost? 

[kgaro113]

Ohh interesting - I see what you’re saying. It is confusing. I was kind of realizing the same thing yesterday re: separation of individual and business when I was finishing them yesterday. We will see what happens.

I owed more in 2023 but it was bc of some issue that impacted NY and TT users who file Sch H specifically. It was like $14 or something? I can’t remember exactly.