Instructions For Schedule H Household Employment Taxes (Form 1040)

enter “disability” and the amount subtracted on the dotted line next

happy to hear from you. You can write to: Internal Revenue Serv-

to line 6. See the notice issued by the state for more details.

i c e ,

T a x

P r o d u c t s

C o o r d i n a t i n g

C o m m i t t e e ,

SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6406,

Washington, DC 20224. Do not send Schedule H (Form 1040) to

How to Get Forms and Publications

this address. Instead, see When and Where to File on page H-3.

To get the IRS forms and publications mentioned in these instruc-

tions (including Notice 797), visit the IRS website at

or call 1-800-TAX-FORM (1-800-829-3676).

Completed Example of Schedule H,

Privacy Act and Paperwork

Form W-2, and Form W-3

Reduction Act Notice.

On February 14, 2006, Susan Green hired Helen Maple to clean her

house every Wednesday. Susan did not have a household employee

We ask for the information on this form to carry out the Internal

in 2005.

Revenue laws of the United States. You are required to give us the

information. We need it to ensure that you are complying with these

Susan paid Helen $50 every Wednesday for her day’s work.

laws and to allow us to figure and collect the right amount of tax.

Susan decided not to withhold Helen’s share of the social security

You are not required to provide the information requested on a

and Medicare taxes from the wages she paid Helen. Instead, she

form that is subject to the Paperwork Reduction Act unless the form

will pay Helen’s share of these taxes from her own funds. Susan did

displays a valid OMB control number. Books or records relating to

not withhold federal income tax because Helen did not give her a

a form or instructions must be retained as long as their contents may

Form W-4 to request withholding and no withholding is otherwise

become material in the administration of any Internal Revenue law.

required. Susan also did not pay Helen advance earned income

credit payments because Helen did not give her a Form W-5.

Subtitle C, Employment Taxes, of the Internal Revenue Code

imposes employment taxes on wages, including income tax with-

Helen was employed by Susan for the rest of the year (a total of

holding. This form is used to determine the amount of the taxes that

46 weeks). The following is some of the information Susan will

you owe. Section 6011 requires you to provide the requested infor-

need to complete Schedule H, Form W-2, and Form W-3.

mation if the tax is applicable to you. Section 6109 requires you to

provide your employer identification number (EIN).

Helen’s total cash wages . . . . .

$2,300.00

Generally, tax returns and return information are confidential, as

($50 x 46 weeks)

required by section 6103. However, section 6103 allows or requires

the IRS to disclose or give the information shown on your tax return

Helen’s share of the:

to others as described in the Code. For example, we may disclose

Social security tax . . . . . .

$142.60

your tax information to the Department of Justice for civil and

($2,300 x 6.2% (.062))

criminal litigation, and to cities, states, and the District of Columbia

for use in administering their tax laws. We may also disclose this

Medicare tax . . . . . . . . . .

$33.35

information to other countries under a tax treaty, to federal and state

($2,300 x 1.45% (.0145))

agencies to enforce federal nontax criminal laws, or to federal law

Helen’s total cash wages each quarter:

enforcement and intelligence agencies to combat terrorism.

1st quarter . . . . . . . . . . .

$350.00 ($50 x 7 weeks)

The time needed to complete and file this form will vary depend-

2nd quarter . . . . . . . . . .

$650.00 ($50 x 13 weeks)

ing on individual circumstances. The estimated burden for individ-

3rd quarter . . . . . . . . . . .

$650.00 ($50 x 13 weeks)

ual taxpayers filing this form is approved under OMB control

number 1545-0074 and is included in the estimates shown in the

4th quarter . . . . . . . . . . .

$650.00 ($50 x 13 weeks)

instructions for their individual income tax return. The estimated

Amount included in box 1 of Form W-2 and Form W-3:

burden for all other taxpayers who file this form is shown below.

Cash wages . . . . . . . . . . . . . . . . . . . . . . . . . $2,300.00

Recordkeeping, 1hr., 38 min.; Learning about the law or the

Helen’s share of social security tax paid by

form, 30 min.; Preparing the form, 54 min.; Copying, assem-

bling, and sending the form to the IRS, 34 min.

Susan . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

142.60

Helen’s share of Medicare tax paid by Susan

33.35

If you have comments concerning the accuracy of these time

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,475.95

estimates or suggestions for making this form simpler, we would be

H-7

Instructions For Schedule H Household Employment Taxes (Form 1040) - 2006 Page 7

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