What is Schedule H used for and when is it filed?

• A. Schedule H is used to report household employment taxes; filed with Form 1040
• B. Schedule H reports capital gains
• C. Schedule H reports unemployment benefits
• D. Schedule H reports health insurance offers

Answer: (A)

Schedule H is the form you use to report and pay payroll taxes for household employees—things like a nanny or housekeeper. It covers the employer's share of Social Security and Medicare taxes and the federal unemployment tax (FUTA). You file Schedule H together with your Form 1040 for the year in which you paid the wages and owe these taxes. If you didn’t have a household employee or your wages didn’t trigger these taxes, you wouldn’t file Schedule H. This form isn’t for reporting capital gains, unemployment benefits, or health insurance offers.