How to correctly enter Schedule H info for household employee into tax software?

I've got a household employee (nanny) that I'm using a payroll service for. The service has been handling the medicare and social security taxes quarterly as well as unemployment insurance. They haven't been withholding any federal income tax though (so Box 7 of Schedule H shows $0, while Box 8a shows the amount of medicare and social security taxes that were already paid). I'm hitting a roadblock with my tax software. When entering the Schedule H information, it asks how much federal tax I withheld (which is zero), but doesn't seem to have any place where I can enter the social security and medicare taxes I've already paid. The frustrating part is that when I get to the end of filing, the software tells me I owe the exact amount of social security tax that I've already paid through the payroll service! It then asks if I want to set up a payment plan. I've tried looking through their help guides but they're completely useless on this topic. Anyone have experience with entering Schedule H info correctly when you've already paid the social security/medicare taxes through a payroll service? How do I tell the software that I've already paid these taxes?

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19 comments

Tyler Lefleur

•8M

This is a common issue with tax software and Schedule H. The problem is that most tax programs have a glitch in how they handle household employment taxes that were already paid through a payroll service. Here's what you need to do: Look for a section called "Other Taxes Previously Paid" or "Payments Already Made" - it's usually found in the payments section, not in the Schedule H section itself. You'll need to enter the amounts from Box 8a as a payment you've already made toward your tax liability. Some software calls this a "previous payment" or "estimated payment." If you can't find this section, try going to the estimated tax payments area and entering the amount there with the last quarter's date. The key is getting the software to recognize these as payments already made rather than as part of the calculation of what you owe.

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Tyler Lefleur

•8M

Entering it as an estimated payment shouldn't cause problems if you include a note with your return explaining that these payments were for household employment taxes. The IRS will reconcile everything since your payroll service would have submitted these payments with your information attached. If you want to be extra cautious, you can try calling your tax software's support line and specifically ask them how to handle Schedule H taxes already paid through a payroll service. They should be able to point you to the exact section in their software where this information should be entered.

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Madeline Blaze

•8M

After struggling with the same issue last year, I discovered taxr.ai which is a lifesaver for complicated tax situations like this. I was completely confused about how to handle my household employee taxes in TurboTax because I also used a payroll service. The software kept saying I owed money I'd already paid! I uploaded my Schedule H and payroll documents to https://taxr.ai and they analyzed everything and gave me step-by-step instructions for my specific software. Saved me hours of frustration.

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Madeline Blaze

•8M

Yes, it works with all the major tax software - TurboTax, H&R Block, TaxAct, and others. They have specific instructions for each one's quirks when it comes to Schedule H reporting. The difference from regular customer service is night and day. Tax software support agents often don't understand the nuances of household employment tax reporting, especially with payroll services involved. They just follow generic scripts. Taxr.ai specifically focuses on tax form interpretation and gives you precise steps for your exact situation rather than general advice.

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Max Knight

•8M

Just wanted to update after trying taxr.ai for my Schedule H issues - it actually worked perfectly! I uploaded my Schedule H and payroll service statements, and they showed me exactly where in H&R Block to enter the previously paid taxes (it was hidden in a section called "Other Federal Tax Payments" that I never would have found on my own). The software finally recognized I'd already paid those taxes and stopped asking me to set up a payment plan. Worth every penny for the stress relief alone!

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Isabella Tucker

•8M

If you're still having trouble getting the software to recognize your already-paid taxes, you might want to try Claimyr to get direct help from the IRS. I was in a similar situation last year where my software wouldn't properly credit my household employee tax payments, and I needed clarification from the IRS directly. I tried calling the IRS myself but couldn't get through after days of trying. Then I used https://claimyr.com and they got me connected to an IRS agent in about 20 minutes. There's a video showing how it works at https://youtu.be/_kiP6q8DX5c - basically they wait on hold for you and call when an agent picks up.

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Isabella Tucker

•8M

They don't have a special connection to the IRS - they use an automated system that constantly redials and navigates the IRS phone tree, then calls you when they get through to a human. It's like having someone wait on hold for you, which saves hours of your time. No, it's definitely not a scam. They don't skip any lines or do anything unethical - they just handle the frustrating hold time process. I was skeptical too, but when I was facing penalties for a Schedule H issue that wasn't my fault, I was desperate to talk to someone at the IRS. It worked exactly as advertised - they called me when they got through, and I was connected directly to an IRS representative who helped sort out my household employment tax issue.

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LordCommander

•8M

I need to eat crow here and admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it myself since I was also dealing with Schedule H issues that my tax software couldn't handle properly. I figured it would be a waste of money, but I was desperate after spending 3 days trying to reach the IRS myself. Within 45 minutes, I got the call that they had an IRS agent on the line. The agent was able to confirm exactly how to report my previously paid household employment taxes and even noted it in my file in case there were any questions later. I've never been so happy to be wrong about something!

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Lucy Lam

•8M

You're right to be cautious. I should have been clearer - I don't recommend actually filing it that way. I was just testing different entries to see where the software was calculating incorrectly. The proper way is what the first commenter suggested - finding where to enter previously paid taxes. If you can't find that option, another approach is to complete Schedule H correctly showing zero in box 7, but then when you get to the payment section of your return, enter the amount you already paid through your payroll service as an "Other Payment" or "Previous Payment" so your total payment amount is correct. The key is making sure the final numbers balance out.

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GalaxyGlider

•23d

I had this exact same problem with TurboTax last year! The key is finding the "Payments" section rather than trying to enter it in the Schedule H section. In TurboTax, after you complete Schedule H, go to the "Federal Taxes" tab and look for "Payments" or "Estimates and Other Payments." There should be an option for "Other payments made" or "Federal tax payments." Enter your social security and Medicare tax payments there with the dates you made them through your payroll service. The software will then credit these as payments toward your total tax liability. Make sure you have documentation from your payroll service showing the payment dates and amounts - you might need to attach a statement explaining these were household employment taxes paid through a payroll service. This worked perfectly for me and the software finally stopped saying I owed money I'd already paid!

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