If you hired someone to do household work and you were able to control what work he or she did and how he or she did it, you had a household employee. This is true even if you gave the employee freedom of action.
You must file Schedule H if you answer 'yes' to any of the following questions:
- Did you pay any one household employee cash wages of $1,900 or more in the tax year? (excluding your spouse, your child under age 21, your parent, or anyone under age 18)
- Did you withhold federal income tax during the tax year for any household employee?
- Did you pay total cash wages of $1,000 or more in any calendar quarter of the current tax year or the prior tax year to all household employees? (excluding your spouse, your child under age 21, or your parent)
Household work is work done in or around your home. Some examples of workers who do household work are:
- Cleaning people
- Health aides
- Private nurses
- Yard workers
See the IRS Instructions for Schedule H (Form 1040) Household Employment Taxes for more information.
To enter the data for Schedule H for Household Employment Taxes into TaxACT:
- From within your TaxACT return (Online or Desktop) click on the Federal Q&A tab
- Click Taxes to expand the category and then click Taxes for Household Employees
- The program will proceed with the interview questions for you to enter or review the appropriate information.