Don’t let tax time get you worried
Learn what you will need to file your taxes when you employ a nanny.
The end is near
The final step in this process is filing your tax return with the IRS. This unpleasant task is made only slightly more vexing. The one difference is that you will need to complete Schedule H. The form calculates your nanny tax in a roundabout way. If you run into trouble, you can find a guide here.
When finished, you will enter the amount on the “Household employment taxes” line of your tax return and include the completed Schedule H with your return.
Information you will need
- The information you used to complete Form W-2
- Details of the State unemployment taxes you have paid
Helpful hints
- Residents of South Carolina, Michigan, and Indiana are part of “credit reduction States”, meaning they receive less of a tax credit for paying State unemployment taxes. This will affect line 23 of your Schedule H. More details can be found here.
- Don’t forget to take advantage of tax credits you have earned by legally paying your nanny taxes.
Congratulations!
You have finished the NannyTaxTools guide. If you have further questions, please see the Frequently Asked Questions (FAQs).
Next step: FAQs