I just want to echo what everyone has said here - this is such a common source of confusion for household employers! I went through the exact same panic last year thinking I was going to double-pay taxes. The consensus here is spot-on: if your payroll service (like QuickPay) is filing quarterly 941s and handling the annual 940, you still need to file Schedule H with your personal return, but you absolutely must check Box 8 to indicate you've already paid the employment taxes through your payroll service. One thing I'd add that helped me feel more confident - I actually requested copies of the 941s that my payroll service filed on my behalf. Most services will provide these if you ask, and it's really helpful to have them in your records. That way you can see exactly what was reported and when, which makes filling out Schedule H much less scary. Also, don't forget to get a detailed year-end summary from QuickPay showing total wages paid, taxes withheld, and employer taxes paid. You'll need these specific figures for Schedule H, and having everything documented properly will save you headaches if the IRS ever has questions. The key is just making sure nothing falls through the cracks - your payroll service handles the quarterly filings, you handle Schedule H (with Box 8 checked), and everybody's happy!

As a tax professional who specializes in household employment, I can confirm everything discussed here is absolutely correct. The confusion between Schedule H and Forms 940/941 is probably the most common question I get from clients with nannies. Here's the definitive breakdown: If your payroll service (QuickPay in your case) files quarterly 941s and annual 940s, you STILL must file Schedule H with your personal tax return. However, you'll check Box 8 on Schedule H Part I to indicate that employment taxes have already been paid through quarterly deposits. This prevents double taxation. The reason you need both is that they serve different purposes - the 940/941 forms handle the actual tax payments and reporting to the government, while Schedule H integrates your household employment into your personal tax return and calculates any additional taxes owed (like the employer portion of Social Security/Medicare if it wasn't fully covered by your quarterly payments). I always recommend my clients request a comprehensive year-end summary from their payroll service that includes: total wages paid, federal income tax withheld, Social Security wages, Medicare wages, and employer taxes paid. You'll need all these figures for Schedule H. One final tip: keep copies of all quarterly payment confirmations from EFTPS and any forms your payroll service files on your behalf. The IRS may request these during an audit, and having organized records will save you significant headaches.

Has anyone considered the W-2 wage limitation for QBI? Since OP is in the 24% bracket with joint income, they might face QBI limitations if they don't have sufficient W-2 wages. The deduction could be limited to 50% of W-2 wages paid by the business. Also for 2023, did you take any money out of the business? If so, the IRS might reclassify those as constructive dividends which wouldn't qualify for QBI. The cleanest solution might be filing an amended S-corp return showing reasonable compensation.

You're in a tricky spot, but it's not insurmountable. Since you didn't run payroll in 2023, you'll need to address this compliance issue head-on with your accountant. The IRS expects S-corp owner-employees to receive reasonable compensation through W-2 wages before taking distributions. Without proper payroll, you risk having all $71.5k treated as wages subject to employment taxes, which would eliminate the S-corp tax advantages. For QBI, the deduction applies to the business income AFTER reasonable compensation is paid. So if you can establish that $49k salary retroactively (through amended returns or other corrective measures your CPA recommends), the remaining income could potentially qualify for QBI. One silver lining: since your combined income keeps you in the 24% bracket, you're below the taxable income thresholds where QBI gets limited by W-2 wages or depreciable property. This means if you can properly separate salary from business income, you should get the full 20% QBI deduction on the qualifying portion. Document everything about your reasonable compensation analysis - industry standards, time spent, responsibilities, etc. This will be crucial for your accountant to determine the best path forward, whether that's amended returns, late payroll filings, or other compliance solutions.

This is a super common issue right now! The IRS system has gotten really aggressive with their lockout protocols, especially during tax season. What's happening is their fraud detection system is flagging legitimate users based on IP patterns, browser fingerprinting, or even shared network traffic. I've found that the most reliable fix is to wait the full 24 hours AND try from a completely different network - like switching from home wifi to mobile data. Also make sure to disable any password managers or auto-fill for the IRS site since those can trigger automatic login attempts in the background. If you're still locked out after trying different networks, calling their tech support line is usually your best bet for getting it resolved quickly.

I work in IT and deal with similar security systems - what you're experiencing is actually their DDoS protection kicking in. The IRS uses CloudFlare or similar services that track suspicious patterns across entire IP ranges, not just individual attempts. Even if your neighbors are having login issues or there's automated traffic from your ISP's IP block, you can get caught in the crossfire. Try using your phone's mobile data instead of wifi, or if you have access to a different internet connection (work, friend's house, etc.), that usually bypasses the block immediately. The system resets every 24 hours but switching networks is much faster than waiting it out.

Just to add another data point - this EXACT issue is why I stopped using TurboTax for my foreign tax returns. I switched to TaxAct which actually lets you override the amount on line 19 without jumping through a million hoops.

I went through this exact same issue last year! The key thing to understand is that Form 1116 doesn't automatically force you to use all your foreign tax credits - you absolutely can elect to carry forward excess amounts. Here's what worked for me: On Form 1116 Part III, line 19 is where you enter the amount of foreign tax credit you want to claim for the current year. Most tax software defaults to the maximum allowable amount, but you can manually enter a lower amount if you want to preserve credits for future years when you might have higher tax liability. Since you mentioned having different categories (like passive income), make sure you're filling out separate Form 1116s for each category. The carryover election is made separately for each category. One tip - if your tax software won't let you override line 19, look for an "override" or "manual entry" option in the forms section. Every major tax software has this capability, though they sometimes hide it pretty well! If all else fails, you might need to file a paper return to have complete control over your foreign tax credit elections. Keep detailed records of your carryover amounts since they can be used for up to 10 years. Good luck with your return!

Has anyone here actually been audited regarding prepaid expenses? My CPA is super conservative and basically refuses to let me prepay anything except trivial amounts. Says it's a "red flag" but I think he's being overly cautious.

Great question about prepaying expenses! I actually work as a tax preparer and see this situation all the time with small business clients. The key is understanding that legitimate prepayments are perfectly acceptable - it's not about gaming the system, it's about timing your cash flows strategically. One thing I'd add to the excellent advice already given: consider prepaying your quarterly estimated taxes for next year if you expect similar income levels. You can make your Q1 estimated payment in December and deduct it immediately, which can provide significant tax savings without any compliance risk. Also, don't overlook professional development expenses - conference fees, certification renewals, or training courses scheduled for early next year can often be prepaid in December. These are usually clear-cut deductions that auditors rarely question. Just make sure whatever you prepay represents a genuine business expense you would incur anyway. The IRS doesn't care about the timing strategy as long as the underlying expenses are legitimate and properly documented.