What Is Schedule H (Form 1040) Used For?
Schedule H (Form 1040) is used to calculate and pay taxes on household employees’ wages if they are subject to Social Security, Medicare, or FUTA taxes. Household employees are nannies, housekeepers, caregivers, butlers, and other individuals who work under your specific instructions in your household.
Who Should Use Schedule H (Form 1040)?
Every individual who has paid any household employee at least $2,800 in cash wages during the year or paid a total of $1,000 in cash wages in any calendar quarter must use Schedule H (Form 1040). These thresholds are subject to change, so it’s important to check whether you’re eligible each year.
When Is Schedule H (Form 1040) Due?
Schedule H is due on the same day as Form 1040, as it is part of the federal tax income return. In other words, you should submit it by April 15th, or the next business day if this date falls on a weekend or a federal holiday.
What Happens If Schedule H (Form 1040) Is Not Submitted?
If you are required to submit Schedule H and you don’t, you risk facing failure-to-file penalties: 5% of your taxes each month, up to a maximum of 25%. Also, your unpaid or incorrectly paid tax accrues interest, further increasing your liability.
How and Where Do I File Schedule H (Form 1040)?
You should file Schedule H with the IRS along with Form 1040, as it is part of that same package. The package can be sent by mail, in a physical form, or submitted electronically using the IRS Free File service.