We did a Sched. H in "nanny tax" section. TurboTax added the amount to our liability. But we already paid quarterly tax for nanny. Ok to list as estimated tax payment?

Forum|Forum|3 years ago
April 1, 2023
1 reply
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We use a service (Poppins Payroll) that estimates and coordinates the federal quarterly taxes for our household employee. So, we already paid the federal quarterly tax. But it's not clear when completing the "nanny tax" section that TurboTax recognizes this. It just said it's adding that amount to our liability. We already added the amount that we paid quarterly under "estimated tax payment." Is that correct?

TurboTax Deluxe Online

Best answer by PattiF

You will need to enter the estimated payments that were paid on your behalf into the TurboTax return. Then you will not have to pay twice.

To enter the federal estimated payments:

Go to Federal on the left side of TurboTax Online
Click on Deductions and Credits at the top of the page
Scroll down to Estimates and Other Taxes Paid
Select Estimated Taxes Payments- click the Start button
Select Estimated taxes for 2022, click Start and follow the prompts

Please see this TurboTax help article for information.

@JL in Sunnyvale

taxlady28

Poppins tracks what is owed and makes it available on your dashboard but it is up to you to make the payments. TurboTax adds it to your liability and TurboTax subtracts the estimated payment that you made from your liability.

JL in Sunnyvale

We are in a similar situation. It turns out our payroll service filed the 1040-ES forms and paid the appropriate amounts. The service has an "FAQs for Tax Filing" section that explains where to find the details.