State Withholding Tax for Household Employee (Nanny)

Forum|Forum|2 years ago
March 26, 2024
1 reply
0 views

We had a household employee (nanny) in 2023 for whom we used a payroll service, SurePayroll. Each quarter, the payroll service submitted quarterly estimated federal taxes and filed quarterly state withholdings (Ohio).

I'm able to see the federal estimate filings (amounts and dates) when I log into my IRS online account. I've entered those amounts and dates in TurboTax for federal estimated taxes. I'm unsure how to handle the state withholdings.

Is Ohio one of the states that deals with this separately from personal tax returns? I have seen a number of questions on this topic related to other states, and that seems fairly common but wanted to ensure I should not be accounting for these tax payments as state estimated taxes on my personal return.

Best answer by DMarkM1

No. You do not enter the state withholding for household employees on your tax return. The withholding is from the employee's pay and they get the credit for that on their tax returns. However, you likely did pay OH Workmen's Comp premiums and OH state unemployment taxes for your household employee (nanny). Those are part of your childcare expenses for the form 2441 Dependent and Childcare Credit. You enter those expenses in the "Deductions & Credits" section, the "Child and other dependent care" topic.