Schedule H (Form 1040)

Everything you need to know about filing Schedule H for household employees

Filing Schedule H for household employees depends mainly on how much you pay and the type of work performed. If you pay a household employee $3,000 or more in cash wages during 2026, the IRS may require you to file Schedule H (Form 1040) to report Social Security and Medicare taxes.

Babysitters, nannies and childcare providers

If you pay a babysitter, nanny or childcare provider $3,000 or more in cash wages during 2026 and they are 18 or older, the IRS generally considers them a household employee. You would need to file Schedule H to report Social Security and Medicare taxes.

An important exception applies to younger babysitters. If the babysitter is under 18 at any time during the year and babysitting is not their principal occupation, you usually do not need to withhold or pay FICA taxes. For example, a high school or college student who babysits occasionally may qualify for this exception.Even when this exception applies, you may still need to file Schedule H if you paid $1,000 or more in total cash wages to all household employees in any calendar quarter.

Occasional help vs regular household employment

Occasional household help such as one-time babysitting or occasional cleaning is less likely to exceed reporting thresholds. In contrast, a full-time nanny, caregiver or housekeeper working regularly in your home is more likely to meet IRS filing requirements.

The IRS also considers how much control you have over the worker. If you set schedules, provide instructions and direct daily activities, the worker is generally considered a household employee rather than an independent contractor.

Caregivers, home health aides and nurses

If you hire a caregiver, home health aide or private nurse to work in your home and pay them $3,000 or more in cash wages during 2026, you generally need to file Schedule H.If the caregiver is hired through an agency, the agency may be considered the employer if it controls the work and handles payroll responsibilities. In that case, you typically would not file Schedule H yourself.

Family members as household employees

Special rules apply when paying family members for household work or in-home care. Wages paid to your spouse, your child under 21 or your parents are generally exempt from FICA and FUTA taxes.

However, exceptions may apply in certain caregiving situations, such as paying a parent to care for your child when you are widowed, divorced or living with a spouse who cannot provide care due to a physical or mental condition.Even if employment taxes do not apply, the family member may still need to report the income on their own tax return.

Housekeepers and cleaning services

If you pay a housekeeper or household cleaner $3,000 or more in cash wages during 2026, you generally must withhold and pay Social Security and Medicare taxes and report them using Schedule H.Your responsibilities may include:

• Withholding the employee’s share of FICA taxes (7.65%) or paying it yourself

• Paying your matching employer share of FICA taxes (7.65%)

• Paying FUTA tax if total household wages reach $1,000 in any calendar quarter

• Issuing Form W-2 by January 31

• Obtaining an employer identification number (EIN) if required

A cleaning company or independent contractor who controls their own schedule, brings their own supplies and works for multiple clients is generally not considered a household employee.

Cash payments and tax rules

Paying household employees in cash does not remove your tax obligations. The IRS defines cash wages as payments made in cash, check, money order or direct deposit.If you meet the $3,000 threshold for any household employee, you generally must file Schedule H regardless of payment method. Non-cash benefits such as food or lodging are not considered cash wages for Social Security and Medicare tax purposes, though they may still be subject to income tax.

Estimated tax payments

Household employment taxes are generally expected to be paid throughout the year. You can increase federal withholding using Form W-4 or make quarterly estimated payments using Form 1040-ES. Underpaying during the year may result in penalties.

Recordkeeping requirements

The IRS recommends keeping household employment records for at least four years.

You should keep:

• Employee name, address and Social Security number

• Dates worked and wages paid

• Hours worked and pay rate

• Copies of Forms W-2 and W-3

• Records of tax withheld

• EIN and unemployment tax records

Need to fill out a Schedule H form?

Our free Schedule H template gives you a clear starting point for reporting your household employment taxes. Use our fillable Schedule H form to enter your wage and tax details directly and produce an accurate, IRS-ready document in minutes. Try it today for free.

Try the free Schedule H form