Form 1040 Schedule H - Household Employment Taxes

Form 1040 Schedule H is a supplemental form used to report and pay household employment taxes, also known as "nanny taxes." This schedule is used to calculate the Social Security and Medicare taxes owed on wages paid to household employees, such as nannies, caregivers, and housekeepers.

Purpose of Schedule H

Schedule H is used to:

  • Report wages paid to household employees
  • Calculate Social Security and Medicare taxes owed on those wages
  • Pay the employer's share of Social Security and Medicare taxes
  • Claim a credit for the employer's share of Social Security and Medicare taxes

Who Needs to File Schedule H?

Individuals who have paid wages to household employees and meet the following conditions must file Schedule H:

  • Paid cash wages of $2,300 or more to a household employee in a calendar year
  • Paid wages to a household employee who is not a family member (e.g., spouse, child, or parent)
  • Paid wages to a household employee who is not exempt from Social Security and Medicare taxes (e.g., certain students or exchange visitors)

Types of Household Employees

Schedule H reports wages paid to the following types of household employees:

  • Nannies or babysitters
  • Caregivers for children or elderly
  • Housekeepers or maids
  • Chefs or cooks
  • Gardeners or landscapers
  • Handymen or maintenance workers

How to Complete Schedule H

To complete Schedule H, individuals should gather all relevant documents, including:

  • Records of wages paid to household employees
  • Employee's Social Security number or Individual Taxpayer Identification Number (ITIN)
  • Employee's name and address

Individuals should then report the wages paid and calculate the Social Security and Medicare taxes owed on those wages.

Tips for Accurate Reporting

To ensure accurate reporting on Schedule H, individuals should:

  • Keep accurate records of wages paid and employee information
  • Verify the employee's Social Security number or ITIN
  • Pay the employer's share of Social Security and Medicare taxes on time to avoid penalties

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