If you hire someone to work in or around your home, you may need to report and pay household employment taxes. These taxes are reported on Schedule H (Form 1040) and are included with your federal income tax return.
Household employment tax generally consists of the employer's share of Social Security and Medicare taxes, plus any applicable federal unemployment (FUTA) tax on wages paid to a household employee.
Who Is a Household Employee?
A household employee is someone you hire to perform household work if you have the right to control not only what work is done, but also how it is performed.
Household work includes services performed in or around your home, such as:
- Babysitters and nannies
- Cooks
- Maids, butlers, and housekeepers
- Drivers
- Health aides and private nurses
- Yard workers and gardeners
It doesn't matter whether the worker is full-time or part-time. What matters is the level of control you have over the work being performed.
Do I Need to File Schedule H?
You may need to file Schedule H if you paid wages to a household employee during 2026.
Generally, household employment taxes apply if:
- You paid a household employee cash wages of $3,000 or more for tax year 2026.
- You paid total cash wages of $1,000 or more in any calendar quarter, which may trigger federal unemployment (FUTA) tax requirements.
Because IRS wage thresholds can change from year to year, check the current Schedule H instructions or Publication 926 for the applicable 2026 limits before filing.
When required, Schedule H is filed with your federal tax return, and any household employment taxes owed are added to your total tax liability.
How Do I Add Schedule H in the Software?
To complete Schedule H:
- Go to Federal
- Select Other Taxes
- Choose Household Employment Taxes
Follow the prompts to enter information about your household employee and wages paid.
Filing Schedule H Without a Tax Return
If you are not required to file a current-year federal income tax return, you may still need to file Schedule H separately and mail it to the IRS.
Do not file Schedule H if you are required to report the wages on:
- Form 941
- Form 943
- Form 944
Why Can't I E-File My Return With Schedule H?
In some situations, a return containing Schedule H cannot be electronically filed.
You may be unable to e-file if you answered No to any of the following questions:
- Did you pay all state unemployment contributions for 2026 by the required due date?
- Were all wages subject to FUTA tax also subject to your state's unemployment tax?
- Did you pay unemployment contributions to only one state?
If any of these conditions are not met, the IRS may require the return to be filed by mail.
Additional Information
- Schedule H Instructions
- Household Employer's Tax Guide (Pub 926)
- Why does it matter if I have a household employee?
- Why are my Household taxes increasing my tax owed
Common Mistake to Avoid
Many taxpayers assume a nanny, caregiver, or housekeeper is an independent contractor. However, if you control how the work is performed, the worker is usually considered a household employee for tax purposes. Properly reporting wages and filing Schedule H can help you avoid IRS notices, penalties, and interest later.
Key Takeaway
If you hire someone to work in your home and pay them above the IRS household employee thresholds, you may need to file Schedule H and pay household employment taxes. Completing Schedule H with your tax return helps ensure you're meeting your federal tax obligations and avoiding unexpected issues with the IRS.