What Is Schedule H (Form 1040): Household Employment Tax Guide | TAXtical

Schedule H (Form 1040): What It Is, Who Needs It, and Why It Matters for Household Employers

If you employ someone to work in your home – whether it's a nanny, caregiver, housekeeper, or even a personal assistant – you might unknowingly have entered the world of household employment taxes. This means you could be responsible for more than just paying their wages; you might also need to file IRS Schedule H, Household Employment Taxes.

In this blog, TAXtical explains everything you need to know about Schedule H, including:

What Schedule H is
Who should file it
What taxes it includes
Common mistakes to avoid
How TAXtical can help you stay compliant as a household employer

What Is Schedule H?

Schedule H (Household Employment Taxes) is a tax form used to report and pay employment taxes for household workers. If you pay cash wages above a certain threshold to someone who works in your home, the IRS requires you to withhold and pay Social Security, Medicare, unemployment, and federal income taxes — just like any employer.

You must file Schedule H with your Form 1040 if you are a household employer.

Who Should File Schedule H?

You need to file Schedule H if all of the following apply:

✅ You paid a household employee (e.g., nanny, cook, housekeeper, health aide, or gardener)

✅ You paid $2,600 or more in cash wages in 2023 (subject to annual updates)

✅ The worker is not an independent contractor (you control how and when they work)

✅ You are not a business, but a private household

Even if your household employee works part-time, you still may be required to file Schedule H if their annual pay exceeds the threshold.

What Taxes Are Reported on Schedule H?

Schedule H allows you to calculate and report:

Social Security and Medicare taxes (FICA)
Federal Unemployment Tax Act (FUTA) taxes
Federal income tax withholding (if applicable)
Additional Medicare taxes, if required

As a household employer, you’re responsible for paying both the employer’s and employee’s share of FICA unless you withhold the employee’s share from their pay.

Common Mistakes to Avoid

❌ Treating a household worker as an independent contractor
❌ Failing to withhold or remit employment taxes
❌ Missing the wage threshold and not realizing you qualify as a household employer
❌ Not obtaining an Employer Identification Number (EIN)
❌ Forgetting to include FUTA even when FICA isn’t required

IRS penalties for noncompliance can be steep, so it’s crucial to handle household employment taxes properly.

How TAXtical Can Help You File Schedule H

Navigating household employment taxes can be confusing, especially if it’s your first time hiring help. At TAXtical, we make it easy for household employers to stay compliant:

🔹 Determine whether you need to file Schedule H
🔹 Calculate Social Security, Medicare, and FUTA taxes
🔹 Help with payroll setup and employee classification
🔹 Obtain your EIN and guide you through withholding procedures
🔹 File Schedule H with your Form 1040 accurately and on time

Why Schedule H Matters

Filing Schedule H isn't just about following IRS rules — it's about protecting yourself and your employee. Properly filing Schedule H:

✅ Helps your employee qualify for Social Security and Medicare
✅ Avoids IRS penalties or audits
✅ Demonstrates responsible employment practices

Let TAXtical Help You Stay Compliant as a Household Employer

Whether you’ve hired a full-time nanny or a weekly housekeeper, TAXtical is here to ensure you meet your tax obligations and avoid costly mistakes. We’ll handle the calculations, compliance, and filing so you can focus on what matters most.

📞 Contact us today for a free consultation and expert help with Schedule H!

Blog