Instructions For Schedule H (Form 1040) - 2016 (Page 8 of 12) in pdf

Then don't complete Part IV but

You Should Also Know

If you file

enter the amount from Schedule H,

Form. . .

line 26, on . . .

Estimated Tax Penalty

1040

line 60a

1040NR

line 59a

You may need to increase the federal income tax withheld from

your pay, pension, annuity, etc., or make estimated tax pay-

1040-SS

Part I, line 4

ments to avoid an estimated tax penalty based on your house-

1041

Schedule G, line 6

hold employment taxes shown on Schedule H, line 26. You

may increase your federal income tax withheld by giving your

employer a new Form W-4, or by giving the payer of your pen-

If you don't file any of the above forms, complete Schedule H,

sion a new Form W-4P. Make estimated tax payments by filing

Part IV and follow the instructions under When and Where To

Form 1040-ES, Estimated Tax for Individuals. For more infor-

File.

mation, see Pub. 505.

Paid Preparers

Estimated tax payments must be made as the tax lia-

Paid preparer use only. You must complete this part if you

bility is incurred: by April 18, 2016; June 15, 2016;

were paid to prepare Schedule H, and aren't an employee of the

September 15, 2016; and January 17, 2017. If you file

CAUTION

filing entity, and aren't attaching Schedule H to Form 1040,

your Form 1040 by January 31, 2017, and pay the rest of the

1040NR, 1040-SS, or 1041. You must sign in the space provi-

tax that you owe with the form, you don't need to make the pay-

ded and give the filer a copy of the return in addition to the

ment due on January 17, 2017.

copy to be filed with the IRS.

Exception. You won't be penalized for failure to make estima-

Form W-2 and Form W-3

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

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

1. You won't have federal income tax withheld from wa-

W-3 when filing on paper. We encourage you to file electroni-

ges, pensions, or any other payments you receive.

cally. If filing electronically, the SSA will generate Form W-3

2. Your income taxes, excluding your household employ-

data from the electronic submission; no separate paper W-3 is

ment taxes, wouldn't be enough to require payment of estima-

required.

ted taxes.

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

What Records To Keep

well as tips and other compensation. The completed Forms

W-2 and W-3 in the example (in these instructions) show how

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

the entries are made. For detailed information on preparing

W-3, and W-4 for at least 4 years after the due date for filing

these forms, see the General Instructions for Forms W-2 and

Schedule H or the date the taxes were paid, whichever is later.

W-3.

If you have to file Form W-2, also keep a record of each em-

Employee's portion of taxes paid by employer. If you paid

ployee's name and SSN. Each payday, you should record and

keep the dates and amounts of:

all of your employee's share of social security and Medicare

Cash and noncash wage payments,

taxes, without deducting the amounts from the employee's pay,

the employee's wages are increased by the amount of that tax

Any employee social security tax withheld,

for income tax withholding purposes. Follow steps 1 through 3

Any employee Medicare tax withheld, and

below. (See the example in these instructions.)

Any federal income tax withheld.

What Is the Earned Income Credit

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

in boxes 4 and 6 (don't include your share of these taxes).

(EIC)?

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

box 5 is greater than box 3, then add the amounts in boxes 4, 5,

The EIC is a refundable tax credit for certain workers.

and 6.)

Which employees must I notify about the EIC? You must

3. Enter the total in box 1.

notify your household employee about the EIC if you agreed to

withhold federal income tax from the employee's wages but

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

didn't do so because the income tax withholding tables showed

located in box b, Kind of Payer.

TIP

that no tax should be withheld.

You’re encouraged to notify each employee whose

For information on filing Forms W-2 and W-3 electronical-

wages for 2016 were less than $47,955 ($53,505 if

TIP

ly, visit the SSA's Employer W-2 Filing Instructions & Infor-

married filing jointly) that he or she may be eligible

mation website at

for the EIC for 2016.

How and when must I notify my employees? You must give

the employee one of the following items.

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

mation about the EIC on the back of Copy B.

H-8

Instructions For Schedule H (Form 1040) - 2016 Page 8

Related Articles

Related forms

Related Categories