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

employee’s share of social security and Medicare taxes, include the

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

payments on lines 1 and 3 of Schedule H and complete the rest of

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 ,

Part I through line 5. Add lines 2, 4, and 5. From that total, subtract

SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6526,

the amount of these taxes withheld by the state. Enter the result on

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

line 6. Also, enter “disability” and the amount subtracted on the

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

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

details.

How to Get Forms and Publications

Completed Example of Schedule H,

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

Form W-2, and Form W-3

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

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

On February 14, 2007, Susan Green hired Helen Maple to clean her

house every Wednesday. Susan did not have a household employee

in 2006 and had no household employees other than Helen during

Privacy Act and Paperwork

2007.

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

Reduction Act Notice

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

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

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

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

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

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

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

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

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

required. Susan also did not pay Helen advance earned income

you do not provide the information we ask for, or provide false or

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

fraudulent information, you may be subject to penalties.

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

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

You are not required to provide the information requested on a

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

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

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

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

Helen’s total cash wages . . . . .

$2,300.00

become material in the administration of any Internal Revenue law.

($50 x 46 weeks)

Helen’s share of the:

Subtitle C, Employment Taxes, of the Internal Revenue Code

Social security tax . . . . . .

$142.60

imposes employment taxes on wages, including income tax with-

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

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

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

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

$33.35

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

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

provide your employer identification number (EIN).

Helen’s total cash wages each quarter:

Generally, tax returns and return information are confidential, as

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

$350.00 ($50 x 7 weeks)

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

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

$650.00 ($50 x 13 weeks)

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

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

$650.00 ($50 x 13 weeks)

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

your tax information to the Department of Justice for civil and

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

$650.00 ($50 x 13 weeks)

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

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

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

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

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

Helen’s share of social security tax paid by

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

enforcement and intelligence agencies to combat terrorism.

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

142.60

Helen’s share of Medicare tax paid by Susan

33.35

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

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

ing on individual circumstances. The estimated burden for individ-

Because Susan paid less than $1,000 per quarter to household

ual taxpayers filing this form is approved under OMB control

employees during 2006 (no employees) and 2007 (see above), she

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

is not liable for FUTA tax.

instructions for their individual income tax return. The estimated

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

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

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

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

If you have comments concerning the accuracy of these time

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

H-7

Instructions For Schedule H (Form 1040) - Household Employment Taxes - 2007 Page 7

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