If you've been paying a nanny or housekeeper, you've probably heard you need to file something called "Schedule H." It sounds official and maybe a little scary.
Good news: it's actually one of the simpler tax forms out there. You're just reporting what you paid your household employee and what taxes you owe. That's it.
Let's walk through it together.
Need to file a W-2 first? See our complete W-2 filing guide.
What Is Schedule H, Exactly?
TL;DR: Schedule H is a one-page form attached to your 1040 where you report all household employment taxes—Social Security, Medicare, FUTA, and withheld income tax. Due April 15.
Schedule H is a one-page form that attaches to your personal tax return (Form 1040). It's where you report:
- The Social Security and Medicare taxes you owe
- Federal unemployment tax (FUTA)
- Any income tax you withheld from your employee
Unlike businesses that file payroll taxes quarterly, household employers get to report everything just once a year on Schedule H. One form, once a year. Not bad, right?
New to all of this? Start with our complete guide to nanny taxes for the basics, or see our nanny taxes overview for a quick summary.
Want to understand the full process? Our how it works guide walks through each step from setup to Schedule H.
Need help with payroll? Learn about our household employer payroll services.
Do You Even Need to File Schedule H?
You need to file if any of these are true:
| Situation | Do You File? |
|---|---|
| Paid any household employee $2,800+ in 2025 | Yes |
| Paid $1,000+ total in any calendar quarter | Yes |
| Withheld federal income tax (at employee's request) | Yes |
| Paid less than $2,800 and didn't withhold income tax | No |
Not sure if your payments cross the threshold? Our babysitter & nanny tax threshold guide breaks it all down.
Important: Even if you forgot to withhold taxes during the year, you still owe the employer portion. You can't skip Schedule H just because you didn't withhold.
When Is It Due?
Schedule H is due when you file your regular tax return:
- April 15, 2026 for the 2025 tax year
- If you file an extension, Schedule H goes with your extended return
Pro tip: To avoid a big tax bill in April, most household employers either:
- Bump up their own W-4 withholding at work, or
- Make quarterly estimated payments throughout the year
A Real Example: Let's Do the Math
Say you paid your nanny $40,000 in 2025. Here's what Schedule H would look like:
Your Nanny's Numbers
- Gross wages: $40,000
- You withheld from her paychecks: $3,060 (7.65% for her share of FICA)
The Schedule H Calculation
| What | Amount | How It's Calculated |
|---|---|---|
| Social Security tax | $4,960 | $40,000 × 12.4% |
| Medicare tax | $1,160 | $40,000 × 2.9% |
| Total FICA | $6,120 | Combined employer + employee shares |
| FUTA wages | $7,000 | First $7,000 only |
| FUTA tax | $42 | $7,000 × 0.6% (after state credit) |
| Total taxes | $6,162 |
What You Actually Owe
Of that $6,162 total:
- $3,060 already came from your nanny's paychecks (you set it aside throughout the year)
- $3,102 is your cost as the employer ($3,060 FICA + $42 FUTA)
So you're not paying $6,162 out of pocket—half of it was already withheld. You're just remitting it to the IRS.
Want to run your own numbers? Use our free nanny tax calculator.
Schedule H Line by Line (The Important Parts)
You don't need to memorize every line, but here are the key ones:
Part I: Social Security & Medicare
Line 1a — Total cash wages: What you paid all household employees in 2025. Cash only—don't include the value of meals or lodging.
Line 2 — Social Security tax: Multiply wages by 12.4%. For 2025, this applies to the first $176,100 per employee (you probably won't hit that).
Line 4 — Medicare tax: Multiply wages by 2.9%. No cap on this one.
Line 6 — Income tax withheld: If your employee asked you to withhold federal income tax, enter it here. Many household employers don't withhold income tax—it's optional.
Part II: Federal Unemployment (FUTA)
Line 10 — FUTA wages: Enter wages up to $7,000 per employee. FUTA only applies to the first $7,000.
Line 15 — FUTA tax: After the state unemployment credit, this is usually just 0.6% of $7,000 = $42 per employee.
Part III: The Total
Line 16: Add up FICA (Line 8) + FUTA (Line 15). This is your total household employment tax.
Lines 17-21: If you made estimated payments or increased your own W-4 withholding, enter those here.
Line 22: Subtract your payments from the total. This is what you owe (or what you overpaid).
Common Mistakes to Avoid
Skipping FUTA because it's small Yes, $42 feels like nothing. But you still have to report it. Don't skip Part II.
Not filing because you didn't withhold If you paid your nanny "gross" without withholding her share, you still owe your employer share (7.65% FICA + FUTA). File Schedule H anyway.
Forgetting state taxes Schedule H is federal only. Most states require separate filings for unemployment insurance. Check your state's requirements →
Mixing up wages Only use cash wages. If you provided free housing or meals, that's nice, but don't include the value on Schedule H.
What About State Taxes?
Schedule H only covers federal taxes. You likely also owe:
- State unemployment insurance (SUTA) — Quarterly and annual filings
- State income tax withholding — If you withheld state taxes
- Disability/paid leave — Required in CA, NJ, NY, HI, RI, and PR
Each state has different forms and deadlines. Find yours →
How to Pay
You have options:
Option 1: Pay when you file Include payment with your 1040. Use IRS Direct Pay, credit card, or mail a check.
Option 2: Adjust your own W-4 Have extra tax withheld from your own paycheck. This spreads the cost throughout the year and avoids a big April bill.
Option 3: Quarterly estimated payments Use Form 1040-ES to pay quarterly (April 15, June 15, September 15, January 15). See our 2026 quarterly tax deadlines for the full schedule.
How NannyKeeper Helps
NannyKeeper calculates everything you need for Schedule H throughout the year:
- Automatic tax calculations for every paycheck
- Running totals so you always know where you stand
- Schedule H summary ready at tax time—just enter the numbers into your tax software
- Quarterly reminders so you're never caught off guard
We also generate W-2s for your employee and track your state-specific requirements.
Note: NannyKeeper prepares all the numbers and documents. You file Schedule H yourself with your tax return (or your tax preparer does). We don't file on your behalf, but we make it easy.
See what you'll owe
Use our free calculator to estimate your nanny tax costs for 2026.
Quick FAQ
Can I file Schedule H without an EIN? Nope. You need an Employer Identification Number. Get one free at irs.gov.
What if I overpaid? If your estimated payments were more than your actual tax, you'll get a refund—just like with the rest of your return.
Can I e-file Schedule H? Yes! It's included automatically when you e-file your 1040.
I use a payroll service. Do I still file Schedule H? Depends on the service. Some file for you; others just calculate the numbers. Check with your provider.
What if I had multiple household employees? You file one Schedule H that covers all household employees. List total wages and taxes for all employees combined. Each employee still gets their own individual W-2.
Can I deduct household employment taxes? The employer's share of Social Security and Medicare taxes is not deductible on your personal return. However, if your employee provides child care, you may qualify for the Child and Dependent Care Credit (Form 2441), which can offset some costs.
What happens if I file Schedule H late? The IRS charges a failure-to-file penalty of 5% of unpaid taxes per month (up to 25%), plus a failure-to-pay penalty of 0.5% per month. Interest accrues from the due date. Filing late is still better than not filing at all.