Schedule H

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Updated Jan 30, 2025
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Schedule H is a tax form between a household employer and the IRS used to report employment taxes for domestic workers. It is used by individuals who hire nannies, housekeepers, or caregivers to fulfill payroll tax obligations.
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Reviewed by Kate Adkham

Template Description

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Schedule H

The government requires individuals who employ household workers to report and pay employment-related taxes. This ensures compliance with tax obligations and secures benefits like Social Security and Medicare for household employees. To calculate and report these taxes, employers must use a specialized document designed for household employment tax purposes.

What Is Schedule H?

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Schedule H is a tax form used by individuals who employ household workers, such as housekeepers, nannies, gardeners, or caregivers, to report wages paid and calculate the employment taxes owed. It allows employers to comply with federal requirements for paying Social Security, Medicare, unemployment taxes, and income tax withholding on behalf of their household employees.

When To Use Schedule H

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Taxpayers use IRS Schedule H if they have hired and paid a household employee and need to report and pay applicable employment taxes. Common scenarios where a Schedule H tax form is required include:

  1. Paying a household employee $2,600 or more in wages during the tax year (as applicable for 2023, subject to annual changes).

  2. Paying $1,000 or more in total wages to household employees in any calendar quarter (used to calculate unemployment tax).

  3. Withholding Social Security and Medicare taxes from a household employee's wages.

Parties Involved

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Several parties play a role in completing 1040 Schedule H:

  • Household employers: Provide accurate records of wages paid to household employees and any taxes withheld.
  • Household employees: May review their form W-2 (Wage and Tax Statement) for accuracy if provided by the employer.
  • Tax professionals: Help employers prepare and file household employee tax forms properly, ensuring all tax obligations are met.

Key Terms of the Schedule H IRS

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  • Household employee: A worker such as a nanny, driver, or gardener performing domestic services under the control of the employer.
  • Employer’s share: The portion of Social Security and Medicare taxes that the employer is responsible for paying.
  • Wage threshold: The minimum amount of wages that triggers the requirement to pay employment taxes.
  • FUTA (Federal Unemployment Tax Act): A federal tax employers pay to provide unemployment benefits to workers.
  • Form W-2: A tax document provided by employers to household employees showing wages paid and taxes withheld.

How To Create Schedule H

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1. Collect records: Gather details of household employees, wages paid, and any withholding or tax payments made throughout the year.

2. Download form 1040 Schedule H: Access the form through the official IRS website or trusted platforms like Loio.

3. Fill out Schedule H: Complete sections for Social Security, Medicare, FUTA taxes, and any withheld income taxes.

  • Part I: Calculate Social Security and Medicare taxes (both employer and employee shares, if applicable).
  • Part II: Determine your federal unemployment (FUTA) tax due, accounting for payments to state unemployment programs.
  • Part III: Summarize and calculate the total amount owed or any overpayments.


4. Submit with your annual filing: Attach the completed IRS nanny tax form to your form 1040, 1040-SR, or 1040-NR and file by the tax deadline.

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