2025 Form 1040 Schedule H - Household Employment Taxes
If you employ household workers, like a nanny, gardener, or housekeeper, you may need to file Schedule H along with your Form 1040 for the 2025 tax year. Schedule H is used to report household employment taxes, which include Social Security, Medicare, federal unemployment (FUTA), and federal income taxes for your employees.
Who Needs to File Schedule H?
You need to file Schedule H if you paid any household employee:
- Social Security and Medicare Taxes: If you paid cash wages of $2,800 or more in 2025 to any household employee.
- Federal Unemployment (FUTA) Tax: If you paid total cash wages of $1,000 or more in any calendar quarter of 2024 or 2025.
- Withheld Federal Income Tax: If you withheld federal income tax from your employee’s wages.
Key Information Reported on Schedule H
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Wages Paid to Household Employees: Total wages paid during the year must be reported. This includes cash wages, but does not include the value of food, lodging, or other non-cash benefits.
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Taxes Withheld and Employer Contributions: The form requires details on Social Security and Medicare taxes withheld, as well as the employer's share of these taxes. Additionally, any federal income taxes withheld and the FUTA tax amount are reported.
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Credit for Federal Unemployment Tax Paid to State: If you also paid state unemployment taxes, you may be eligible for a credit against your FUTA tax.
Why It's Important to File Schedule H
Filing Schedule H ensures that you comply with federal tax laws regarding household employment. Failure to report and pay the appropriate taxes can result in penalties and interest. Additionally, properly filing these taxes helps your employees qualify for Social Security and Medicare benefits.