Schedule H 2026: Line-by-Line for Nanny Employers

Schedule H is the form where household employers report and pay federal employment taxes: FICA, FUTA, and any income tax you withheld. It attaches to your personal Form 1040 once a year, not quarterly like a business payroll filing.

If you paid a nanny, housekeeper, or other household employee $3,000 or more in 2026, this is the form that calculates what you owe. (For 2025 wages, the threshold was $2,800 per IRS Publication 926.)

This guide walks you through every line with current numbers and worked examples. Last reviewed May 11, 2026 against IRS Publication 926 (2026 edition) and the current Schedule H Instructions.

Need a W-2 for your employee first? See our W-2 filing guide for 2026 wages. New to household employer taxes? Start with the complete nanny tax guide.

What Schedule H Reports

Schedule H (Form 1040) is where household employers report and pay four federal employment taxes:

• Social Security tax: 12.4% total (6.2% employer + 6.2% employee)
• Medicare tax: 2.9% total (1.45% employer + 1.45% employee)
• Federal Unemployment Tax (FUTA): 6.0% nominal, usually 0.6% effective after state credit
• Federal income tax withheld: only if your employee requested withholding via Form W-4

The form has three parts:

• Part I: Social Security, Medicare, and income taxes
• Part II: Federal Unemployment (FUTA) tax
• Part III: Total household employment taxes

Schedule H attaches to your personal Form 1040. It cannot be filed separately or with a business return.

Before You Start: What You'll Need

Gather these before you begin:

From your records:

• Total cash wages paid to each household employee in 2026
• Social Security and Medicare taxes withheld from employee paychecks
• Federal income tax withheld (if any)
• Your EIN

From your state:

• State unemployment tax (SUTA) paid for the year
• Your assigned SUTA rate
• State wage base (varies by state)

If you're reconstructing payroll:

• Bank statements showing payroll payments
• Pay stubs or payroll records
• State unemployment tax statements (quarterly or annual)

Using NannyKeeper? All of these numbers are calculated for you in your year-end summary. Log in and export your Schedule H worksheet.

Part I: Social Security, Medicare, and Income Taxes

Part I is the largest section. It captures FICA (Social Security + Medicare) and any federal income tax you withheld.

Line 1: Total Cash Wages

What to enter: Total cash wages paid to all household employees in 2026.

This includes:

• Regular wages
• Overtime pay
• Bonuses
• Holiday pay
• Sick pay (if you provide it)

Do NOT include:

• Non-cash compensation (room, board, meals, transit passes)
• Wages paid to employees under 18 who are students (unless household work is their principal occupation)
• Wages to your spouse
• Wages to your child under age 21
• Wages to your parent (with limited exceptions)

Example: You paid your nanny $42,000 in 2026 including a $1,000 holiday bonus. Enter $42,000.

Line 2: Social Security Tax Wages

What to enter: The lesser of Line 1 or $184,500 (the 2026 Social Security wage base, up from $176,100 in 2025).

For nearly all household employers, this equals Line 1. The cap only matters if you paid an employee more than $184,500 in a single year. The cap rarely applies to household employment.

Example: Line 1 is $42,000. Enter $42,000 (well under the cap).

Line 3: Social Security Tax

Calculation: Line 2 × 12.4%.

This 12.4% combines your 6.2% employer share with your employee's 6.2% share. Schedule H captures the total obligation. The employee's share was (or should have been) withheld from their paychecks throughout the year.

Example: $42,000 × 0.124 = $5,208.

Line 4: Medicare Tax Wages

What to enter: Total wages subject to Medicare tax.

Unlike Social Security, Medicare has no wage cap. All wages are subject, so this typically equals Line 1.

Example: Enter $42,000.

Line 5: Medicare Tax

Calculation: Line 4 × 2.9%.

The 2.9% combines your 1.45% with the employee's 1.45%.

Example: $42,000 × 0.029 = $1,218.

Line 6: Additional Medicare Tax

What to enter: If any single employee earned more than $200,000 from you, withhold an additional 0.9% Medicare tax on wages above $200,000.

The 0.9% is employee-only. There's no employer match. As the employer, you're responsible for withholding it.

For most household employers: Enter $0. Very few household employees earn over $200,000 from a single family.

Line 7: Total Social Security and Medicare Taxes

Calculation: Line 3 + Line 5 + Line 6.

This is your total FICA obligation for the year.

Example: $5,208 + $1,218 + $0 = $6,426.

Line 8: Federal Income Tax Withheld

What to enter: Federal income tax you withheld from your employee's wages (if any).

Federal income tax withholding is optional for household employers. Unlike business employers, you only withhold federal income tax if your employee asks you to (typically by submitting a Form W-4).

Many families don't withhold. The employee pays it themselves when they file their personal return.

Example:

• Didn't withhold: Enter $0
• Withheld $2,500 at employee's request: Enter $2,500

Line 9: Total Social Security, Medicare, and Income Taxes

Calculation: Line 7 + Line 8.

Example: $6,426 + $0 = $6,426.

Part II: Federal Unemployment (FUTA) Tax

FUTA funds federal unemployment insurance. It's entirely the employer's responsibility. Nothing is withheld from your employee's pay.

Line 10: State Unemployment Contributions

Checkbox question: Did you pay unemployment contributions to a state unemployment fund?

• Yes: Check the box and continue to Lines 11-17.
• No: Check the box and skip to Line 18. (Almost no household employers fall here, since every U.S. state and the District of Columbia has unemployment insurance.)

Line 11: Name of State

What to enter: Two-letter abbreviation for the state where your employee works. Usually your home state.

Multiple states? Complete a separate set of Lines 11-17 for each.

Line 12: State Contributions Paid

What to enter: Total SUTA you paid for 2026.

This should match your state unemployment agency records. Most states require quarterly payments; add all four quarters.

Example: You paid California EDD a total of $420 for unemployment insurance for the year. Enter $420.

Note: SUTA rates vary widely. New employers usually get a default rate (around 2.5–3.5% in most states); experienced employers' rates adjust based on claims history. Check your state's rules →

Line 13: State Experience Rate

What to enter: Your assigned SUTA rate as a decimal.

States assign a rate at registration. New employers get a default; after a few years it adjusts based on whether former employees filed claims.

Example: California assigned you 3.4%. Enter 0.034.

Line 14: FUTA Wages

What to enter: The first $7,000 paid to each employee. The federal unemployment wage base is $7,000. Anything above is not subject to FUTA.

Example: You paid $42,000. Enter $7,000.

Line 15: FUTA Tax

Calculation: Line 14 × 6.0%.

The nominal FUTA rate is 6.0%. You'll get a credit for paying SUTA in Lines 16-17, which reduces the effective rate.

Example: $7,000 × 0.06 = $420.

Line 16: Maximum Credit

Calculation: Line 14 × 5.4%.

The maximum credit for state unemployment taxes paid is 5.4% of FUTA wages.

Example: $7,000 × 0.054 = $378.

Line 17: Net FUTA Tax

Calculation: Line 15 minus the smaller of Line 12 or Line 16.

You get a credit for state unemployment taxes paid, but the credit can't exceed 5.4% of wages ($378 in our example).

• If you paid $420 or more in SUTA: credit is $378 (the cap)
• If you paid less than $378 in SUTA: credit is limited to what you paid

Example with full credit:

• Line 15: $420
• Line 12: $420
• Line 16: $378
• Credit = smaller of $420 or $378 = $378
• Net FUTA = $420 − $378 = $42

Example with limited credit:

• You only paid $250 in SUTA
• Credit = smaller of $250 or $378 = $250
• Net FUTA = $420 − $250 = $170

For most household employers who paid full SUTA, the result is $42 per employee.

Part III: Total Household Employment Taxes

Part III sums everything and calculates what you owe.

Line 18: Total Social Security, Medicare, Income, and FUTA Taxes

Calculation: Line 9 + Line 17.

Example: $6,426 + $42 = $6,468.

Line 19: Reserved for Future Use

Currently unused. Leave blank or enter $0.

Line 20: Total Household Employment Taxes

Calculation: Line 18 − Line 19.

For most filers, this equals Line 18.

Example: $6,468 − $0 = $6,468.

Lines 21-25: Adjustments and Credits

These lines handle adjustments most household employers won't use:

• Line 21: COVID-related credits (expired)
• Line 22: COVID-related credits (expired)
• Line 23: Total refundable credits
• Line 24: Net tax after credits
• Line 25: Additional credits

For most 2026 filers, skip or enter $0.

Line 26: Amount You Owe

What this represents: The total household employment tax that flows to your Form 1040.

If you made no estimated payments during the year, this is what you'll pay when you file.

Example: $6,468.

Complete Example: The Garcia Family

The clearest way to see Schedule H in action is to walk through a complete return. Here's a typical California household employer with one nanny:

Their situation:

• Nanny paid $42,000 in 2026
• Withheld $3,213 in FICA from the nanny's paychecks (7.65%)
• No federal income tax withheld (the nanny didn't request it)
• Paid $420 in California SUTA (3.4% × $7,000 wage base)
• Made no estimated payments during the year

Their completed Schedule H:

What they actually pay:

The $6,468 on Line 26 is the total tax obligation. Part of it was already covered:

• $3,213 was withheld from the nanny's paychecks (employee's 7.65% share)
• $3,255 is the employer's share

The Garcia family's out-of-pocket for Schedule H is $3,255, but they also owe the employee's withheld amount to the IRS, for a total payment of $6,468 with their tax return.

The math:

• Employee's share (withheld): $42,000 × 7.65% = $3,213
• Employer's FICA share: $42,000 × 7.65% = $3,213
• Employer's FUTA: $42
• Total: $3,213 + $3,213 + $42 = $6,468 ✓

Common Schedule H Errors

Most Schedule H errors fall into seven patterns that the IRS catches consistently. Avoid these and you'll avoid the majority of household-employer adjustments and penalties.

Error 1: Including Non-Cash Compensation in Wages

The mistake: Adding the value of room, board, or other non-cash compensation to Line 1.

The fix: Only include actual cash wages. If you provided free rent worth $1,000/month, do not add $12,000 to wages.

Error 2: Skipping Part II Because FUTA Is "Small"

The mistake: Leaving Part II blank because $42 feels trivial.

The fix: Part II is required even if the amount is small. A blank Part II is an incomplete return.

Error 3: Using the Wrong Social Security Wage Cap

The mistake: Capping Line 2 at the state unemployment wage base ($7,000–$15,000 depending on state).

The fix: The Social Security wage base for 2026 is $184,500, far higher than any state's unemployment cap. For household employers, this rarely applies.

Error 4: Confusion About Who Pays What

The mistake: Treating the employee's 7.65% FICA withholding as separate from Schedule H.

The fix: Schedule H captures the total 15.3% FICA. The employee's share should have been withheld during the year; when you pay the Line 26 amount, you're paying both your share and remitting what you withheld.

Error 5: Missing the Household Employment Indicator on Form 1040

The mistake: Filing Schedule H without checking the household employment indicator on your 1040.

The fix: On Form 1040, Schedule 2, check the box for household employment taxes. The amount from Schedule H Line 26 flows to Schedule 2 Line 9.

Error 6: Missing the Filing Requirement

The mistake: Thinking you don't need to file because wages were below some other threshold.

The fix: If you paid $3,000 or more to any single household employee in 2026, you must file Schedule H. (The 2025 threshold was $2,800.) Also file if you withheld federal income tax at the employee's request, regardless of wage amount.

Error 7: Using a Prior Year's Form

The mistake: Filing a 2025 Schedule H for 2026 wages.

The fix: Always download the current year's form from IRS.gov. Rates, thresholds, and line numbers can change between years.

Using Tax Software

Major tax software handles Schedule H. Here's where to find it:

TurboTax: "Other Tax Situations" → "Household Employment Taxes"

H&R Block: "Other Income" → "Wages Paid to Household Employees"

FreeTaxUSA: "Other Taxes" → "Household Employment Taxes"

TaxAct: "Miscellaneous Taxes" → "Household Employment Taxes (Schedule H)"

The software asks the same questions as the paper form but does the calculations for you. Have your wage totals, withholding amounts, and SUTA paid ready.

Payment Options

When you file your return with Schedule H, you have several options:

Option 1: Pay with your tax return. Include the Schedule H tax in your total payment when you file. Simplest approach.

Option 2: Quarterly estimated payments. Use Form 1040-ES. Due dates: April 15, June 15, September 15, January 15 (see our 2026 quarterly tax deadlines).

Option 3: Increase your own W-4 withholding. If you have a regular job, bump up withholding on your W-4 to cover household employment taxes. Many families find this easier than quarterly payments.

Option 4: IRS payment plan. If you can't pay the full amount, apply for an installment agreement. You'll pay interest, but you'll avoid more serious collection actions.

When to Get Professional Help

Hire a tax professional if:

• You have multiple household employees: separate FUTA calculations per employee
• An employee earned over $200,000: Additional Medicare Tax applies
• You're in a complex state: California, New York, and New Jersey have additional household-employer obligations
• You made errors in previous years: may need amended returns
• An employee worked in multiple states: multi-state SUTA and FUTA calculations
• You're unsure about any amount: better to get it right than fix it later

Cost expectation: A CPA or Enrolled Agent typically charges $100–$300 to prepare Schedule H as part of your return.

Frequently Asked Questions

Do I need to file Schedule H if I paid under the threshold?

If you paid less than $3,000 to a household employee in 2026, you generally don't need to file Schedule H. But you still must file if you withheld federal income tax at the employee's request, regardless of wage amount.

Can I file Schedule H without an EIN?

No. You need an Employer Identification Number to file Schedule H. The EIN goes on the form and identifies you as the employer. Get one free at IRS.gov, or read our EIN guide for household employers.

Can I file Schedule H separately from my 1040?

No. Schedule H must be attached to your personal Form 1040. You can't file it separately or with a business return.

Can I e-file Schedule H?

Yes. Schedule H is included automatically when you e-file your 1040 through any major tax software.

What if I have multiple household employees?

Add all wages together on Schedule H. Report combined totals for Social Security and Medicare. For FUTA, calculate separately for each employee (each gets the $7,000 wage base), then sum the results. Each employee still gets their own W-2.

Can I deduct household employment taxes?

The employer's share of Social Security and Medicare taxes isn't deductible on your personal return. However, if your employee provides child care that lets you work or look for work, you may qualify for the Child and Dependent Care Credit (claimed on Form 2441), which can offset some costs. The credit can cover 20–50% of qualifying expenses up to $3,000 for one child or $6,000 for two or more.

What's the penalty for filing 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.

Is Schedule H the same as Form 941?

No. Form 941 is for regular businesses with non-household employees who file quarterly. As a household employer, you file Schedule H annually with your personal tax return.

Summary: The Quick Version

1. Part I (Lines 1-9): Calculate FICA

   • Social Security: 12.4% of wages (capped at $184,500 for 2026)
   • Medicare: 2.9% of all wages
   • Plus any federal income tax withheld

2. Part II (Lines 10-17): Calculate FUTA

   • 6.0% on the first $7,000 of wages
   • Minus credit for SUTA paid
   • Usually nets to about $42 per employee

3. Part III (Lines 18-26): Add it up

   • Part I + Part II = total household employment taxes
   • Amount flows to your Form 1040

4. Pay: Include with your tax return by April 15

Want to estimate before you start? Our free nanny tax calculator previews your FICA, FUTA, and total tax obligation.