Who Must File Schedule H
Schedule H must be filled out and filed for any of three possible reasons: (1) Any individual tax payer who paid any household employee wages of $1,700 or more in the tax year. Spouses, tax payer’s children under 21, parents, or anyone under 18 are not considered household employees. However, there are exceptions so tax payers should consult Line A in the Schedule H Instructions. (2) Any individual tax payer who withheld Federal Income Tax for a Household Employee during the tax year. (3) Any individual tax payer who paid total cash wages to all household employees of $1,000 or more in any calendar quarter of the previous tax year or the current tax year. Wages paid to spouses, the tax payer’s children under 21, and parents should not be used to figure these amounts.
Constitution of a household employee is finely defined on Schedule H. It includes any individual hired by the tax payer to work in or around the tax payer’s house if the tax payer had control over the work that was done and the manner in which it was completed. Even if the employee was give freedom of action, this constitutes an employer/employees relationship. If the tax payer had control of the details of what work was done, Schedule H must be filed.
Schedule H does not need to be filled out if someone operating a business or his employees/agents did the work under the owner’s business. Schedule H is for employees such as babysitters, caretakers, drivers, nannies, housekeepers, and yard workers. This includes workers hired through an agency or a list provided by an agency. Either full- or part-time employees are included in Schedule H.