Tax refund is short over $800 due to Schedule H

[DAyers]

Hello!

   I filed our taxes in February and just got our refund on the 10th of March. I just realized the amount deposited is short $854 from what Turbo tax and the IRS website says we are getting. When I checked our transcripts it says it's due to a Schedule H.

   I am kind of confused as to what exactly a Schedule H is. I am a sole prop, I sell through my Etsy shop and my own website, I don't have any household employees. Is the Schedule H for self-employment taxes that need to be paid? Because every other year I've done this, those were automatically taken out as I went along and filled out my information. Should I be getting this money back? It's very frustrating that Turbo Tax told us one amount and now we're short this much money.

[macuser_22]

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@DAyers wrote:

Hello!

   I filed our taxes in February and just got our refund on the 10th of March. I just realized the amount deposited is short $854 from what Turbo tax and the IRS website says we are getting. When I checked our transcripts it says it's due to a Schedule H.

   I am kind of confused as to what exactly a Schedule H is. I am a sole prop, I sell through my Etsy shop and my own website, I don't have any household employees. Is the Schedule H for self-employment taxes that need to be paid? Because every other year I've done this, those were automatically taken out as I went along and filled out my information. Should I be getting this money back? It's very frustrating that Turbo Tax told us one amount and now we're short this much money.

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The Federal Schedule H is your share of Household Employee tax and has nothing to do with self-employment.

Self-employment is reported on schedule C and the Self-employment tax on schedule SE.

[DAyers]

Okay, so that's separate, gotcha. Thank you.

But I don't ever remember doing a Schedule H before. And anything I look up about it talks about household employees (i.e. maids, nannies, etc.) which i don't have. Am I myself considered a household employee as a sole prop?

[macuser_22]

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@DAyers wrote:

Okay, so that's separate, gotcha. Thank you.

But I don't ever remember doing a Schedule H before. And anything I look up about it talks about household employees (i.e. maids, nannies, etc.) which i don't have. Am I myself considered a household employee as a sole prop?

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Schedule H is for the *employer* of a household employee or nanny that you hired to work in your home.

If you did not have an employee then delete the schedule H.

[DAyers]

Gotcha. Now since we've already filed, do I need to amend our return?

[macuser_22]

Yes,

The amend function will be available after March 25.

If you filed, it is like dropping it into the mail - you cannot get it back if accepted by the IRS or state.

Do not rush to amend - no hurry. You have 3 years to amend and amended returns are taking 4-6 months or longer to be processed so waiting a few weeks will make little difference and amending too soon might just compound the problem.


To amend your 2020 tax return:

-- First, *wait* to see if your return has been accepted or rejected by the IRS or state. DO NOT do anything until you receive the accept or reject e-mail.

-- If rejected, you can correct and re-send your return.

-- If accepted you should *wait* until your return has been processed and you receive your refund or conformation that any tax due has been paid. (If you file an amended return while you first return is being processed it can cause extended delays for both returns if two returns are in the system at the same time). In addition, if the IRS makes any change on your original return, you might end up having to amend the amendment – a sticky process that can take a year or more).

-- Then you can start the amend process.

It is suggested that it be mailed certified with return receipt (or other tracking service) to verify that the IRS receives it. That is the only proof of mailing that the IRS will accept.

-- Amended returns can be mailed or e-filed - allow 8-12 weeks - can take up to 16 weeks (4 months) for processing.


See this TurboTax FAQ for help with amending:

https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed

You can check the status of your amended return here but allow 3 weeks after filing for it to show up:
https://www.irs.gov/filing/wheres-my-amended-return

[DAyers]

Thank you SO much!