Which form is used to report household employment taxes?

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The correct choice is Schedule H, which is specifically designed for reporting household employment taxes. When individuals employ domestic workers—like nannies, housekeepers, or caregivers—they may be liable for Social Security, Medicare, and federal unemployment taxes. Schedule H is used to detail these obligations, allowing taxpayers to calculate and report the taxes due.

Form 1040 is the individual income tax return, primarily used to report personal income, deductions, and tax liabilities but does not specifically address household employment taxes on its own. Form W-2 is issued by employers to employees to report wages and taxes withheld but is not the form used for the reporting of household employment tax liabilities. Form 1099 is typically used to report payments made to independent contractors or income other than wages, and is not applicable to household employment tax reporting. Therefore, Schedule H is the appropriate form for this specific situation.

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