2023 Form 1040 Schedule H - Household Employment Taxes

Form 1040 Schedule H is used to report household employment taxes. This form is specifically designed for individuals who have hired household employees, such as nannies, housekeepers, or caregivers, and need to fulfill their tax obligations related to such employment.

What is Schedule H?

Schedule H is a part of the individual income tax return (Form 1040). It’s used to report household employment taxes, ensuring compliance with federal tax obligations related to household employees.

Who Needs to File 1040 Schedule H?

You need to file Schedule H if you paid any household employee:

• Cash wages of $2,600 or more in 2023.
• Total cash wages of $1,000 or more in any calendar quarter of 2022 or 2023, which require you to pay federal unemployment (FUTA) tax.

What Taxes Are Reported on 1040 Schedule H?

1. Social Security and Medicare Taxes: Employers must match the Social Security and Medicare taxes withheld from their employees' wages.
2. Federal Unemployment Tax (FUTA): Applies if you paid $1,000 or more in total wages in any calendar quarter of the previous two years.
3. Federal Income Tax Withholding: If agreed upon with your employee, you may withhold federal income tax.

Key Sections of Schedule H

1. Part I - Social Security, Medicare, and Income Taxes: Report wages paid, employee’s portion of Social Security and Medicare taxes withheld, and the employer’s matching portion.
2. Part II - Federal Unemployment (FUTA) Tax: Calculate the amount of FUTA tax due based on the wages paid.
3. Part III - Total Household Employment Taxes: Sum up all the taxes calculated in the previous sections and determine the total amount due.

Filing Schedule H

• Attach to Form 1040: Include Schedule H with your annual tax return.
• Paying Taxes: You may need to make estimated tax payments throughout the year or increase withholding on your other income to cover the household employment taxes.

Why It's Important

Filing 1040 Schedule H ensures that you comply with federal tax laws related to household employees. It helps in protecting both the employer and the employee by accurately reporting and paying required taxes.

For the current year's Form 1040 Schedule H, click here.