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Household Employment Taxes

When to fill out Schedule H of 1040 Form?

You must complete Form 1040 Schedule H, Household Employment Taxes, if any of the following apply:

  • You paid any one household employee cash wages of $1,500 or more in the tax year
  • You withheld federal income tax during the tax year for any household employee
  • You paid total cash wages of $1,000 or more in any calendar quarter of the tax year or the previous tax year to all household employees

Household employment taxes are entered on line 62 of Form 1040.

Note: do not include amounts paid to an employee who was under age 18 at any time during the year and was also a student.

Definition of a household employee

A household employee is defined as any person who does household work where you control what will be done and how it will be done. This would include babysitters, nannies, health aides, maids, yard workers, etc.

If the worker controls how the work is done, the worker is generally not an employee.

Household Employment Tax

You are not required to withhold federal income tax from a household employee's wages. You are required, however, to provide each household employee with a W-2 form when you do agree to withhold social security and Medicare taxes of federal income tax.

Employers are required to obtain an EIN to file Form W-2 and Schedule H. Do not use your social security number as an EIN.



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