Looking for a U.s. Department Of The Treasury Forms And Templates? Download it for free!

Estimated tax payments must be made as the tax liabil-

Line 25.

Follow the instructions in the chart below.

ity is incurred: by April 17, June 15, September 17, and

the following January 15. If you file your Form 1040 by

Then do not complete Part IV but

CAUTION

January 31 and pay the rest of the tax that you owe with

If you file

enter the amount from Schedule

the form, you do not need to make the payment due on January 15.

Form. . .

H, line 24, on . . .

Exception.

You will not be penalized for failure to make estimated

1040

line 59a

tax payments if both 1 and 2 below apply for the year.

1040NR

line 58

1. You will not have federal income tax withheld from wages,

pensions, or any other payments you receive.

1040-SS

Part I, line 4

2. Your income taxes, excluding your household employment

1041

Schedule G, line 6

taxes, would not be enough to require payment of estimated taxes.

If you do not file any of the above forms, complete Part IV of

Schedule H and follow the instructions under When and Where To

What Records To Keep

File .

You must keep copies of Schedule H and related Forms W-2, W-3,

Paid Preparers

W-4, and W-5, Earned Income Credit Advance Payment Certifi-

cate, for at least 4 years after the due date for filing Schedule H or

Paid preparer use only.

You must complete this part if you were

the date the taxes were paid, whichever is later. If you have to file

paid to prepare Schedule H, and are not an employee of the filing

Form W-2, also keep a record of each employee’s name and social

entity, and are not attaching Schedule H to Form 1040, 1040NR,

security number. Each payday, you should record the dates and

1040-SS, or Form 1041. You must sign in the space provided and

amounts of:

give the filer a copy of the return in addition to the copy to be filed

•

Cash and noncash wage payments.

with the IRS.

•

Any employee social security tax withheld.

Form W-2 and Form W-3

•

Any employee Medicare tax withheld.

If you file one or more Forms W-2, you must also file Form W-3.

•

Any federal income tax withheld.

•

You must report both cash and noncash wages in box 1, as well

Any advance EIC payments you made.

as tips and other compensation. The completed Forms W-2 and

W-3 in the example (in these instructions) show how the entries are

What Is the Earned Income Credit

made. For detailed information on preparing these forms, see the

Instructions for Forms W-2 and W-3, Wage and Tax Statement and

(EIC)?

Transmittal of Wages and Tax Statements.

The EIC is a refundable tax credit for certain workers.

Employee’s portion of taxes paid by employer.

If you paid all of

You must notify

your employee’s share of social security and Medicare taxes, with-

Which employees must I notify about the EIC?

out deducting them from the employee, follow steps 1 through 3.

your household employee about the EIC if you agreed to withhold

(See the example in these instructions.)

federal income tax from the employee’s wages but did not do so

because the income tax withholding tables showed that no tax

1. Enter the amounts you paid on your employee’s behalf in

should be withheld.

boxes 4 and 6 (do not include your share of these taxes).

Note.

You are encouraged to notify each employee whose wages

2. Add the amounts in boxes 3, 4, and 6. (However, if box 5 is

for 2011 were less than $43,998 ($49,078 if married filing jointly)

greater than box 3, then add the amounts in boxes 4, 5, and 6.)

that he or she may be eligible for the EIC.

3. Enter the total in box 1.

How and when must I notify my employees?

You must give the

employee one of the following:

On Form W-3, put an “X” in the “Hshld. emp.” box

•

located in box b, Kind of Payer.

The official IRS Form W-2, which has the required informa-

TIP

tion about the EIC on the back of Copy B.

•

A substitute Form W-2 with the same EIC information on the

back of the employee’s copy that is on Copy B of the official IRS

For information on filing Forms W-2 and W-3 electronically,

Form W-2.

visit the website for Social Security, Business Services Online, at

•

Notice 797, Possible Federal Tax Refund Due to the Earned

Income Credit (EIC).

•

Your written statement with the same wording as Notice 797.

If you are not required to give the employee a Form W-2, you

You Should Also Know

must provide the notification by February 10, 2012.

You must hand the notice directly to the employee or send it by

First-Class Mail to the employee’s last known address.

Estimated Tax Penalty

How do my employees claim the EIC?

Eligible employees claim

You may need to increase the federal income tax withheld from

the EIC on their 2011 tax returns.

your pay, pension, annuity, etc. or make estimated tax payments to

avoid an estimated tax penalty based on your household employ-

ment taxes shown on line 24 of Schedule H. You may increase your

Rules for Business Employers

federal income tax withheld by filing a new Form W-4, Employee’s

Withholding Allowance Certificate, or Form W-4P, Withholding

Do not use Schedule H if you chose to report employment taxes for

Certificate for Pension or Annuity Payments. Make estimated tax

your household employees along with your other employees on

payments by filing Form 1040-ES, Estimated Tax for Individuals.

Form 941, Employer’s QUARTERLY Federal Tax Return; Form

For more information, see Pub. 505, Tax Withholding and Esti-

943, Employer’s Annual Federal Tax Return for Agricultural Em-

mated Tax.

ployees; or Form 944, Employer’s ANNUAL Federal Tax Return.

H-8

Form H-14 - 2011 Instructions For Schedule H (Form 1040) Household Employment Taxes - Household Employers Page 8

Related Articles

Related forms

Related Categories