Schedule H- What You Need to Know

Jan 17, 2025 | Household Employee Management, Household Payroll & Taxes, Tax Season

As the April 15th tax filing deadline approaches, many people are diligently preparing their personal income tax returns. However, it’s crucial to remember that if you employed a nanny, senior caregiver, or any other household employee and paid them $2,700 or more in 2024, you are required to complete and submit a Schedule H along with your Form 1040.

What Is Schedule H?

Schedule H is the form the IRS requires you to use to report your federal household employment tax liability for the year.

To accurately complete the 2024 Schedule H, you’ll need to provide information such as the total federal income taxes withheld from your employee’s wages, the total wages paid to them throughout the year, and the amount of state unemployment insurance taxes you paid. These figures will be used to complete the form, which you then will attach to your Form 1040.

More details on how to complete Schedule H.

What Happens If I Don’t File Schedule H?

Omitting Schedule H from your 2024 tax return can have serious consequences. Both the IRS and the Social Security Administration may question the accuracy of your federal tax payments. This could result in notices from either agency requesting clarification and supporting documents, potentially leading to penalties. Additionally, you may need to amend your tax return, a process that can be time-consuming and costly.

By using GTM Payroll, we can prepare Schedule H for you, so you can have peace of mind knowing it is completed accurately so you can file on time.

Schedule H preparation, as well as other documents (Form W-2 and Form W-3) are part of GTM’s optional year-end service for our clients.

To learn more about how GTM can make tax time easy, call (800) 929-9213. Get a complimentary, no-obligation consultation with a household employment expert. Or schedule time with us at your convenience.

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