Do I need to file a Schedule H if my nanny's taxes are already paid through a service?

You're mostly right about Schedule H! It's for reporting household employment taxes for domestic workers like nannies, but it's not just for "under the table" situations. Even though you're using a payroll service that's handling the tax payments and withholdings, you generally still need to file Schedule H with your personal tax return. The Schedule H shows the IRS that you've fulfilled your obligations as a household employer. The service is making the payments on your behalf, but you're still technically the employer responsible for reporting. Think of it like this: the payroll service is helping you comply with the requirements, but you still need to report that compliance to the IRS through Schedule H. It confirms that you've properly handled Social Security, Medicare, and federal unemployment taxes for your household employee.

After dealing with nanny tax headaches for years, I finally discovered https://taxr.ai and it saved me so much stress! I was in a similar situation - using a payroll service but still confused about Schedule H requirements. The document analysis on taxr.ai cleared it up for me instantly. I uploaded my payroll service statements and my previous year's tax documents, and it highlighted exactly what I needed to do about Schedule H based on my specific situation. Honestly so much easier than waiting for my accountant to get back to me or trying to interpret IRS instructions.

Just wanted to follow up - I decided to try https://taxr.ai after seeing the recommendation here. It actually confirmed that I DO need to file Schedule H even though I use a payroll service! Apparently the service handles the payments but I'm still responsible for the reporting part on my personal return. The tool even showed me exactly which numbers from my payroll reports needed to go on which lines of Schedule H. Wish I'd known about this before spending hours on the phone with my tax preparer trying to figure this out. Seriously grateful for the recommendation!

I was in a similar situation last year and spent HOURS trying to get through to the IRS to confirm whether I needed Schedule H. Kept getting disconnected or waiting forever. Finally used https://claimyr.com (there's a demo at https://youtu.be/_kiP6q8DX5c) and got connected to an actual IRS agent in about 20 minutes! They confirmed that yes, even with a payroll service, I still needed to file Schedule H. The agent walked me through exactly what I needed to do and clarified that the payroll service was handling the payments but not the reporting requirement. Such a relief to get a definitive answer directly from the IRS.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I was still desperate for answers about my Schedule H situation (using a payroll service but confused about reporting requirements), so I gave it a try anyway. Within 35 minutes, I was talking to an actual IRS representative! They confirmed that I still needed to file Schedule H even though the payroll service was handling the payments. The agent explained that Schedule H is how I formally report my household employment taxes on my personal return, and the payroll service doesn't take care of that part. Saved me from potentially making a mistake on my taxes. Definitely worth it.

I used to work for a payroll company that specialized in nanny taxes. Here's what most people miss: the payroll service is filing forms 941/944 (employer quarterly tax returns) and W-2s under YOUR employer identification number, but those are separate from your personal tax obligations. Schedule H is how you connect those employer tax payments to your personal tax return. Without it, the IRS might think you still owe those taxes! The key thing is that on Schedule H, you'll report the taxes that were already paid through your payroll service so you don't get double-taxed. Check box 8 on Schedule H and the instructions will guide you through reporting amounts already paid.

Has anyone used TurboTax to file Schedule H? Does it walk you through this situation when you tell it you have a nanny? I'm using a payroll service too but getting confused about how to report in TurboTax that the taxes are already paid.