IRS Schedule H – Household Employment Taxes

Schedule H (Form 1040), Household Employment Taxes, reports Social Security, Medicare, federal income tax withholding, and federal unemployment tax for household employees. It is an annual employment-tax schedule, not a deduction form and not simply a record of amounts paid for household services.

The first question is worker classification. A person is generally a household employee when the household controls not only what work is done but how it is done. A self-employed service provider who controls the work may not be an employee.

Download the current final Schedule H PDF from IRS.gov and consult the current IRS instructions. This page covers the 2025 revision for tax year 2025, verified 2026-08-10.

How the IRS classifies and files this form

Document type: annual household employment tax schedule.

Schedule H is generally attached to Form 1040, 1040-SR, 1040-NR, 1040-SS, or 1041. A household employer who is not otherwise required to file an income tax return may file Schedule H by itself following the IRS instructions.

Who is a household employee

Nannies, babysitters, housekeepers, private nurses, caretakers, yard workers, and similar workers can be household employees depending on control and circumstances. Labels, payment method, part-time status, or the worker’s preference do not decide classification. Workers supplied and controlled by an agency may be employees of the agency instead.

Part I: Social Security, Medicare, and withholding

The current instructions specify the annual cash-wage threshold and exceptions for wages paid to a spouse, child, parent, or worker under age 18. Once applicable, the schedule calculates employer and employee shares of Social Security and Medicare tax and any federal income tax voluntarily withheld.

Do not copy a threshold from a prior-year article because it can change annually.

Part II: FUTA tax

Federal unemployment tax uses a different wage test and wage base. State unemployment contributions and their timeliness can affect the allowable credit. FUTA is generally an employer tax and is not withheld from the employee’s wages.

Employer obligations beyond Schedule H

A household employer may need an EIN, Forms W-2 and W-3, employee eligibility verification, and state employment or unemployment filings. Schedule H reports federal tax but does not replace those duties. Household employers may increase wage withholding or estimated tax payments during the year to cover the liability.

Filing without an income tax return

Unlike most schedules in this batch, Schedule H can have a stand-alone filing path when the household employer is not otherwise required to file an income tax return. The filer follows the Schedule H instructions for the signature, payment, and mailing procedure rather than attaching it to a nonexistent Form 1040.

Household payroll mistakes

• Calling a controlled worker an independent contractor without applying the common-law test.
• Using the Social Security/Medicare wage test for FUTA.
• Withholding the employer’s FUTA tax from the worker.
• Forgetting W-2/W-3 or state requirements.
• Waiting until filing season to fund a large household employment tax liability.

Cash wages and noncash compensation

The employment-tax tests generally focus on cash wages, but the instructions define what counts and provide exceptions. Food, lodging, clothing, transit passes, and other noncash items can receive different treatment for Social Security, Medicare, FUTA, and income tax. Household employers should use the current-year tables rather than applying one definition to every tax.

Federal income tax withholding from household wages is generally voluntary when the employee requests it and the employer agrees, while Social Security and Medicare withholding can be mandatory once the rules apply.

Payment timing and estimated tax planning

Schedule H is annual, but the liability can affect the household employer’s required payments during the year. An employer can ask an employer to increase withholding from the employer’s own wages or make estimated tax payments. Waiting until the return due date can produce an estimated-tax penalty even if Schedule H itself is filed on time.

Where a household employer operates a sole proprietorship, the instructions determine whether household payroll is reported with the individual return or through business employment tax filings; the same wages should not be reported twice.

Household employer compliance map

This cross-check identifies the records and calculations that should agree before Schedule H is filed. It is especially useful when several statements or supporting forms feed one line.

Resolve any Schedule H difference at the source rather than forcing it into the final total. Retain this reconciliation and the documents behind it with the tax records even when the worksheet itself is not submitted to the IRS.

Questions taxpayers commonly ask

Can Schedule H ever be filed by itself?

Yes. The instructions provide a stand-alone method for a household employer who is not otherwise required to file a federal income tax return.

Do I issue a 1099 to a household employee?

An employee is generally reported on Form W-2, not treated as an independent contractor merely for convenience.

Is every babysitter a household employee?

No. Classification and special family or under-age-18 rules depend on the facts and current instructions.

FederalFormGuide.com is an independent informational resource, not the IRS. This guide provides general information and does not replace the current IRS instructions or professional advice for a taxpayer’s facts.

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