Instructions for Schedule H

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2025

Instructions for Schedule H

Household Employment Taxes

Section references are to the Internal Revenue Code

unless otherwise noted.

Future Developments

For the latest information about developments related to

Schedule H and its instructions, such as legislation

enacted after they were published, go to IRS.gov/

ScheduleH.

What's New

Social security and Medicare taxes for 2025. The

social security tax rate is 6.2% each for the employee and

employer. The social security wage base limit is $176,100.

The Medicare tax rate is 1.45% each for the employee

and employer, unchanged from 2024. There is no wage

base limit for Medicare tax.

Social security and Medicare taxes apply to the wages

of household workers you pay $2,800 or more in cash

wages in 2025. For more information, see Cash wages

and $2,800 test, later. For information about the rates and

wage threshold that will apply in 2026, see Pub. 926.

Qualified parking exclusion and commuter transportation benefit. For 2025, the monthly exclusion for

qualified parking is $325 and the monthly exclusion for

commuter highway vehicle transportation and transit

passes is $325.

Withholding on qualified overtime compensation.

For tax years beginning after 2024, and ending before

2029, P.L. 119-21, commonly known as the One Big

Beautiful Bill Act, allows individuals (employees and other

workers not treated as employees) to deduct up to

$12,500 ($25,000 if married filing jointly) of qualified

overtime compensation on their income tax returns.

Qualified overtime is compensation that exceeds the

regular rate of pay (such as the "half" portion of

time-and-a-half compensation) that is required to be paid

to an individual under section 7 of the Fair Labor

Standards Act (FLSA) of 1938. The FLSA provides that

employers must generally pay covered, nonexempt

employees at least one-and-a-half times their regular rate

of pay for hours worked over 40 hours per week. For more

information about private homes and domestic service

employment under the FLSA, go to dol.gov/agencies/whd/

fact-sheets/79-flsa-private-home-domestic-service.

Employers must use an employee’s updated Form W-4,

Employee’s Withholding Certificate, if one is submitted by

the employee, and the federal income tax withholding

procedures in Pub. 15-T, Federal Income Tax Withholding

Methods, to allow the employee to account for their

expected deduction and receive more money in each

paycheck instead of waiting until filing their income tax

return to receive the full benefit of this deduction. Overtime

Dec 1, 2025

compensation is still generally subject to both the

employer share and employee share of social security tax

and Medicare tax.

Employers and other payers must file information

returns (for example, Forms W-2, 1099-MISC, and

1099-NEC) with the Social Security Administration (SSA)

or IRS, as applicable, and furnish statements to overtime

recipients showing qualified overtime compensation paid

during the year. However, the IRS has provided transition

relief to employers and payers for the tax year 2025

reporting requirements. For more information, see Notice

2025-62, 2025-48 I.R.B. 740, available at IRS.gov/irb/

2025-48_IRB#NOT-2025-62.

Electronic payment. The IRS recommends paying

electronically whenever possible. Options to pay

electronically include using your bank account with Direct

Pay, your debit or credit card, your digital wallet, or your

IRS Online Account. Go to IRS.gov/Pay to see all your

payment options.

Bicycle commuting reimbursements. The Tax Cuts

and Jobs Act previously suspended the exclusion of

qualified bicycle commuting reimbursements from your

employee's income for tax years beginning after 2017 and

before 2026. P.L. 119-21 permanently eliminates this

exclusion for tax years beginning after 2025.

Credit reduction state. A state that hasn't repaid money

it borrowed from the federal government to pay

unemployment benefits is a “credit reduction state.” The

Department of Labor determines these states. If an

employer pays wages that are subject to the

unemployment tax laws of a credit reduction state, that

employer must pay additional federal unemployment tax.

For 2025, there are credit reduction states. If you paid

any wages that are subject to the unemployment

compensation laws of a credit reduction state, your credit

against federal unemployment tax will be reduced based

on the credit reduction rate for that credit reduction state.

Use Worksheet 2 to figure your credit reduction for 2025.

Reminders

The COVID-19 related credit for qualified sick and

family leave wages is limited to leave taken after

March 31, 2020, and before October 1, 2021, and may

no longer be claimed on Schedule H (Form 1040).

The time periods for providing the leave for the credits for

qualified sick and family leave wages, as enacted under

the Families First Coronavirus Response Act (FFCRA)

and amended and extended by the COVID-related Tax

Relief Act of 2020, for leave taken after March 31, 2020,

and before April 1, 2021, and the credit for qualified sick

and family leave wages under sections 3131, 3132, and

3133 of the Internal Revenue Code, as enacted under the

Instructions for Schedule H (Form 1040) (2025) Catalog Number 21451X

Department of the Treasury Internal Revenue Service www.irs.gov

American Rescue Plan Act of 2021 (the ARP), for leave

taken after March 31, 2021, and before October 1, 2021,

have expired. Effective for tax periods beginning after

2023, the lines used to claim the credit for qualified sick

and family leave wages have been removed from

Schedule H (Form 1040) because it would be extremely

rare for an employer to pay wages after 2023 for qualified

sick and family leave taken after March 31, 2020, and

before October 1, 2021.

Outsourcing payroll duties. You’re responsible to

ensure that tax returns are filed and deposits and

payments are made, even if you contract with a third party

to perform these acts. You remain responsible if the third

party fails to perform any required action. Before you

choose to outsource any of your payroll and related tax

duties (that is, withholding, reporting, and paying over

social security, Medicare, Federal Unemployment Tax Act

(FUTA), and income taxes) to a third-party payer, such as

a payroll service provider or reporting agent, go to

IRS.gov/OutsourcingPayrollDuties for helpful information

on this topic. For more information on the different types of

third-party payer arrangements, see section 16 of Pub. 15.

References to federal income tax withholding

don't apply to employers in Puerto Rico unless

CAUTION you have employees who are subject to U.S.

income tax withholding. Contact your local tax department

for information about income tax withholding.

Paid preparers. If you use a paid preparer to complete

Schedule H, the paid preparer must complete and sign

the paid preparer’s section of the Schedule H unless

you’re attaching Schedule H to Form 1040, 1040-SR,

1040-SS, 1040-NR, or 1041. A paid preparer must sign

Schedule H and provide the information requested in the

Paid Preparer Use Only section only if the preparer was

paid to prepare Schedule H and isn't your employee. The

preparer must give you a copy of the return in addition to

the copy to be filed with the IRS.

General Instructions

These instructions give you some background information

about Schedule H. They tell you who must file

Schedule H, how to complete it line by line, and when and

where to file it. If you want more in-depth information about

household employment tax topics relating to Schedule H,

see Pub. 926.

Who Needs To File Schedule H?

You must file Schedule H if you answer “Yes” to any of the

questions on lines A, B, and C of Schedule H.

Did you have a household employee? If you hired

someone to do household work and you could control

what work they did and how they did it, you had a

household employee. This is true even if you gave the

employee freedom of action. What matters is that you had

the right to control the details of how the work was done.

Example. You paid Peyton Oak to babysit your child

and do light housework 4 days a week in your home.

Peyton followed your specific instructions about

household and childcare duties. You provided the

household equipment and supplies Peyton needed to do

the work. Peyton is your household employee.

Household work is work done in or around your home.

Some examples of workers who do household work are:

Babysitters

Butlers

Caretakers

Cleaning people

Cooks

Drivers

Health aides

Housekeepers

Maids

Nannies

Private nurses

Yard workers

If a worker is your employee, it doesn't matter whether

the work is full or part time or that you hired the worker

through an agency or from a list provided by an agency or

association. Also, it doesn't matter if the wages paid are

for work done hourly, daily, weekly, or by the job.

If you’re a home care service recipient receiving home

care services through a program administered by a

federal, state, or local government agency, and the person

who provides your care is your household employee, you

can ask the IRS to authorize an agent under section 3504

to report, file, and pay all federal employment taxes,

including FUTA taxes, on your behalf. See Form 2678,

Employer/Payer Appointment of Agent, for more

information.

If a government agency or third-party agent

TIP reports and pays the employment taxes on wages

paid to your household employee on your behalf,

you don't need to file Schedule H to report those taxes.

Workers who aren't your employees. Workers you get

from an agency aren't your employees if the agency is

responsible for who does the work and how it is done.

Self-employed workers are also not your employees. A

worker is self-employed if only the worker can control how

the work is done. A self-employed worker usually provides

their own tools and offers services to the general public in

an independent business.

Example. You made an agreement with a worker to

care for your lawn. The worker runs a lawn care business

and offers their services to the general public. The worker

hires their own helpers, provides their own tools and

supplies, and instructs the helpers how to do their jobs.

Neither the worker nor their helpers are your employees.

For more information, see What Forms Must You File?

in Pub. 926.

Who Needs To File Form W-2 and

Form W-3?

Note. References to Form W-2 also apply to Form

499R-2/W-2PR unless otherwise specified. References to

Form W-3 also apply to Form W-3 (PR) unless otherwise

specified.

If you have a household employee, you need to

withhold and pay social security and Medicare taxes if you

paid cash wages of $2,800 or more in 2025 to any one

household employee. See Did you have a household

employee?, earlier, and Line A, later, for more information.

You must file Form W-2 for each household employee

to whom you paid $2,800 or more of cash wages in 2025

that are subject to social security and Medicare taxes. To

find out if the wages are subject to these taxes, see the

instructions for Schedule H, line 1, line 3, and line 5, later.

Even if the wages aren't subject to these taxes, if you

withheld federal income tax from the wages of any

household employee, you must file Form W-2 for that

employee. However, when not subject to social security

and Medicare taxes, leave boxes 3, 4, 5, and 6 blank on

Form W-2; only complete boxes 1 and 2. If the wages are

below $2,800 for 2025 and you complete boxes 3, 4, 5,

and 6 on Form W-2, the SSA will reject your Form W-2.

Note. If you are a household employer located in Puerto

Rico and wages are not subject to social security and

Medicare taxes, leave boxes 20, 21, 22, and 23 blank on

Form 499R-2/W-2PR, but complete the rest of the form

according to your instructions. If the wages are below

$2,800 for 2025 and you complete boxes 20, 21, 22, and

23 of Form 499R-2/W-2PR, the SSA will reject your Form

499R-2/W-2PR.

If you're required to file a 2025 Form W-2 for any

household employee, you must also send Form W-3 with

Copy A of Form(s) W-2 to the SSA. Send one copy of

Form W-3 with Copy A of Form(s) W-2 to the SSA, and

keep one copy of Form W-3 for your records. You're

encouraged to file your Forms W-2 and W-3 electronically.

If filing electronically via the SSA's Form W-2 Online

service, the SSA generates Form W-3 data from the

electronic submission of Form(s) W-2. For more

information on electronic filing, go to the SSA's Employer

W-2 Filing Instructions & Information website at SSA.gov/

employer.

For more information, see What Forms Must You File?

in Pub. 926.

Do You Have an Employer

Identification Number (EIN)?

If you have household employees, you will need an EIN to

file Schedule H. If you don't have an EIN, you may apply

for one online by going to IRS.gov/EIN. You may also

apply for an EIN by faxing or mailing Form SS-4 to the

IRS. Don't use your social security number (SSN) in place

of an EIN. The Instructions for Form SS-4 explain how you

can get an EIN immediately over the Internet, generally

within 4 business days by fax, or in about 4 weeks if you

apply by mail. Go to IRS.gov/Forms to get forms and

publications, including Form SS-4.

Can Your Employee Legally Work in

the United States?

It is unlawful to employ a person who can't legally work in

the United States. When you hire a household employee

to work for you on a regular basis, you and the employee

must each complete part of the U.S. Citizenship and

Immigration Services (USCIS) Form I-9, Employment

Eligibility Verification. You must verify that the employee is

either a U.S. citizen or a person who can legally work in

the United States and you must keep Form I-9 for your

records. You can get the form and the USCIS Handbook

for Employers by going to the USCIS website at

USCIS.gov/I-9-Central. You may use E-Verify at EVerify.gov to confirm the employment eligibility of newly

hired employees.

Note. Form I-9 is available in Spanish. Only employers

located in Puerto Rico may complete the Spanish version

of Form I-9 instead of the English version. Go to

USCIS.gov/I-9 to get the English and Spanish versions of

Form I-9 and their separate instructions.

What About State Employment

Taxes?

If you employed a household employee in 2025, you

probably have to pay contributions to your state

unemployment fund for 2025. To find out if you do, contact

your state unemployment tax agency. For a list of state

unemployment tax agencies, go to the U.S. Department of

Labor's website at oui.doleta.gov/unemploy/agencies.asp.

You should also find out if you need to pay or collect other

state employment taxes or carry workers' compensation

insurance.

Note. Household employers located in Puerto Rico, see

section 14 of Pub. 15 or call 787-754-5353.

When and Where To File

Filing Schedule H

If you file Form 1040, 1040-SR, 1040-SS, 1040-NR, or

1041 for 2025, remember to attach Schedule H to it. You

are encouraged to file electronically. For more information

on electronic filing, see the instructions for your tax return.

If you file a paper return, mail your return, by April 15,

2026, to the address shown in your tax return instructions.

Exceptions. If you get an extension of time to file your

return, file your return with Schedule H by the extended

due date. If you’re a fiscal year filer, file your return and

Schedule H by the due date of your fiscal year return,

including extensions.

If you’re a calendar year taxpayer and have no

TIP household employees for 2025, you don't have to

file Schedule H for 2025.

If you have household employees for 2025, but you’re

not required to file a 2025 tax return (for example,

because your income is below the amount that requires

you to file), you must file Schedule H by itself by April 15,

2026. Complete Schedule H and put it in an envelope with

your check or money order. Don't send cash. See the list

of filing addresses, later. Mail your completed Schedule H

and payment to the address listed for the place where you

live. Make your check or money order payable to “United

States Treasury” for the total household employment taxes

due. Don't make a separate payment. You pay both

income and employment taxes to the United States

Treasury when you file Schedule H with your return. Most

filers must pay by April 15, 2026. Enter your name,

address, SSN, daytime phone number, and “2025

Schedule H” on your check or money order. Household

employers that are tax exempt and don't have to file a tax

return (for example, churches that pay a household worker

to take care of a minister's home) may also file

Schedule H by itself.

The IRS recommends paying electronically whenever

possible. Go to IRS.gov/Pay to see all your payment

options.

Note. Taxpayers in Puerto Rico pay their income tax to

the Department of the Treasury, Government of Puerto

Rico.

Filing Form W-2 and Form W-3

You're encouraged to file your Forms W-2 and W-3

electronically. Go to the SSA's Employer W-2 Filing

Instructions & Information website at SSA.gov/employer to

learn about electronic filing. If filing electronically via the

SSA's Form(s) W-2 Online service, the SSA generates

Form W-3 automatically based on your Form(s) W-2.

By February 2, 2026, send Copy A of Forms W-2 with

Form W-3 to the SSA and give Copies B, C, and 2 of Form

W-2 to each employee. For paper forms, you will meet this

requirement if the form is properly addressed, mailed, and

postmarked no later than February 2, 2026. Go to

SSA.gov/employer for details.

If you file Forms W-2 and W-3 electronically, don't

mail the paper Forms W-2 and W-3 to the SSA.

CAUTION

Where to file paper Forms W-2 and W-3. File Copy A

of Form(s) W-2 with Form W-3 at the following address.

Social Security Administration

Direct Operations Center

Wilkes-Barre, PA 18769-0001

If you use Certified Mail to file, change the ZIP

TIP code to “18769-0002.” If you use an IRS-approved

private delivery service (PDS), add “Attn: W-2

Process, 1150 E. Mountain Drive” to the address and

change the ZIP code to “18702-7997.” Go to IRS.gov/PDS

for a list of IRS-approved PDSs.

Check with your state, city, or local tax department

TIP to find out if you must file Copy 1 of Form W-2.

Penalties. You may have to pay a penalty if you don't give

Forms W-2 to your employees or file Copy A of the forms

with the SSA by the due dates. You may also have to pay

a penalty if you don't show your employee's SSN on Form

W-2 or don't provide correct information on the form. See

Penalties in the General Instructions for Forms W-2 and

W-3 for more information.

Specific Instructions

How To Fill in Schedule H, Form W-2,

and Form W-3

Completing Schedule H

If you were notified that your household employee

received payments from a state disability plan,

CAUTION see State Disability Payments, later.

Name of employer. Enter your name. If you are

attaching Schedule H to Form 1040, 1040-SR, or

1040-SS, your name must match the name shown on your

return. Only two Schedules H can be attached to Form

1040, 1040-SR, and 1040-SS, one Schedule H for each of

the primary taxpayer and the secondary taxpayer.

If you are attaching Schedule H to Form 1040-NR, your

name must match the name shown on your return. If you

are attaching Schedule H to Form 1041, your name must

match the name of the estate or trust shown on your

return.

Social security number (SSN). Enter your SSN. Form

1041 filers, don't enter a number in this space. But be sure

to enter your EIN in the space provided.

Employer identification number (EIN). An EIN is a

nine-digit number assigned by the IRS. The digits are

arranged as follows: 00-0000000. Enter your EIN in the

space provided. If you don't have an EIN, see Do You

Have an Employer Identification Number (EIN), earlier. If

you applied for an EIN but haven't received it, enter

“Applied For” and the date you applied. Don't use your

SSN as an EIN.

Line A. Did you pay any one household employee

cash wages of $2,800 or more in 2025? To figure the

total cash wages you paid in 2025 to each household

employee, don't include amounts paid to any of the

following individuals.

• Your spouse.

• Your child who was under age 21.

• Your parent. (See Exception for parents below.)

• Your employee who was under age 18 at any time

during 2025. If the employee wasn't a student, see

Exception for employees under age 18 below.

Exception for parents. Include the cash wages you

paid your parent for work in or around your home if both

(1) and (2) below apply.

1. Your child (including an adopted child or stepchild)

who lived with you was under age 18 or had a physical or

mental condition that required the personal care of an

adult for at least 4 continuous weeks during the calendar

quarter in which services were performed. A calendar

quarter is January through March, April through June, July

through September, or October through December.

2. You were divorced and not remarried, a widow or

widower, or married to and living with a person whose

physical or mental condition prevented your spouse from

caring for the child for at least 4 continuous weeks during

the calendar quarter in which services were performed.

Exception for employees under age 18. Include the

cash wages you paid to a person who was under age 18

and not a student if providing household services was the

employee’s principal occupation.

Cash wages. Cash wages include wages paid by check,

money order, etc. Cash wages don't include the value of

food, lodging, clothing, transit passes, or other noncash

items you give a household employee. However, cash you

give your employee in place of these items is included in

cash wages.

Noncash wages paid to household employees aren't

subject to social security taxes or Medicare taxes;

however, they are subject to federal income tax unless a

specific exclusion applies. Report the value of taxable

noncash wages in box 1 of Form W-2 together with cash

wages. Don't show noncash wages in box 3 or in box 5 of

Form W-2. See section 5 of Pub. 15 for more information

on cash and noncash wages, and Pub. 15-B for more

information on fringe benefits.

Note. Household employers located in Puerto Rico report

the value of taxable noncash wages in box 7 of Form

499R-2/W-2PR together with cash wages. Don't show

noncash wages in box 20 or in box 22 of Form 499R-2/

W-2PR. See section 5 or section 9 of Pub. 15 for more

information on cash and noncash wages.

Transportation (commuting) benefits. If you

reimburse your employee for qualified parking,

transportation in a commuter highway vehicle, or transit

passes, you may be able to exclude the cash

reimbursement amounts from counting as cash wages

subject to social security and Medicare taxes. Qualified

parking is parking at or near your home or at or near a

location from which your employee commutes to your

home. It doesn't include parking at or near your

employee's home. For 2025, you can reimburse your

employee up to $325 per month for qualified parking and

$325 per month for combined commuter highway vehicle

transportation and transit passes. See Transportation

(Commuting) Benefits in Pub. 15-B for more information.

Any cash reimbursement over these amounts is included

as wages.

Part I. Social Security, Medicare, and Federal

Income Taxes

Social security and Medicare taxes fund retirement,

survivor, disability, and health benefits for workers and

their families. You and your employees generally pay

these taxes in equal amounts.

You’re not required to withhold federal income tax from

wages you pay a household employee. You should

withhold federal income tax only if your household

employee asks you to withhold it and you agree. The

employee must give you a completed Form W-4.

For 2025, the rate of social security tax on taxable

wages is 6.2% each for the employee and employer. Stop

paying social security tax on and entering an employee's

wages on line 1 when the employee's taxable wages

reach $176,100 for the year. However, continue to

withhold income and Medicare taxes for the whole year on

all wages paid in 2025, even when the social security

wage base limit of $176,100 has been reached.

The Medicare tax rate is 1.45% each for the employee

and employer, unchanged from 2024. There is no wage

base limit for Medicare tax.

If you didn't deduct the employee's share from the

employee’s wages, you must pay the employee's share of

tax and your share of tax, a total of 12.4% for social

security tax and 2.9% for Medicare tax. See Completing

Form W-2 and Form W-3, later, for more information.

Note. Employers located in Puerto Rico, see the

Instructions for Form W-3 (PR).

In addition to withholding Medicare tax at 1.45%, you

must withhold a 0.9% Additional Medicare Tax from

wages you pay to an employee in excess of $200,000 in a

calendar year. You’re required to begin withholding

Additional Medicare Tax in the pay period in which you

pay wages in excess of $200,000 to an employee and

continue to withhold it each pay period until the end of the

calendar year. Additional Medicare Tax is only imposed on

the employee. There is no employer share of Additional

Medicare Tax. All wages that are subject to Medicare tax

are subject to Additional Medicare Tax withholding if paid

in excess of the $200,000 withholding threshold. For more

information on Additional Medicare Tax, go to IRS.gov/

ADMTfaqs.

$2,800 test. If you pay a household employee $2,800

or more in cash wages during 2025, you must report and

pay social security and Medicare taxes on all the wages,

including the first $2,800 paid to that employee. The test

applies to cash wages paid in 2025 regardless of when

the wages were earned. See Pub. 926 for more

information.

Line 1. Total cash wages subject to social security

tax. Enter the total of cash wages (see Cash wages,

earlier) paid in 2025 to each household employee who

meets the $2,800 test, explained earlier.

If you paid any household employee cash wages

of more than $176,100 in 2025, include on line 1

CAUTION only the first $176,100 of that employee's cash

wages.

Line 2. Social security tax. Multiply the amount on

line 1 by 12.4% (0.124). Enter the result on line 2.

Line 3. Total cash wages subject to Medicare tax.

Enter the total cash wages (see Cash wages, earlier) paid

in 2025 to each employee who meets the $2,800 test,

explained earlier. There is no limit on wages subject to

Medicare tax.

Line 4. Medicare tax. Multiply the amount on line 3 by

2.9% (0.029). Enter the result on line 4.

Line 5. Total cash wages subject to Additional Medicare Tax withholding. Enter the total cash wages (see

Cash wages, earlier) paid to each employee in 2025 that

exceeded $200,000.

Line 6. Additional Medicare Tax withholding. Multiply

the amount on line 5 by 0.9% (0.009). Enter the result on

line 6.

Line 7. Federal income tax withheld. Enter any federal

income tax you withheld from the wages you paid to your

household employees in 2025. See Pub. 926 and Pub.

15-T for information on withholding federal income taxes.

Note. Household employers located in Puerto Rico, skip

line 7.

Line 8. Total social security, Medicare, and federal income taxes. Add lines 2, 4, 6, and 7. Enter the result on

line 8.

Line 9. Did you pay total cash wages of $1,000 or

more in any calendar quarter of 2024 or 2025 to all

household employees? Review the cash wages you

paid to all your household employees for each calendar

quarter of 2024 and 2025.

If the total for any quarter in 2024 or 2025 is not $1,000

or more, check “No,” stop here, and include the amount

from line 8 on Schedule 2 (Form 1040), line 9. If you don't

file Form 1040, complete Schedule H, Part IV, and follow

the instructions under When and Where To File, earlier.

If the total for any quarter in 2024 or 2025 is $1,000 or

more, check “Yes” and complete Schedule H, Part II.

Part II. Federal Unemployment (FUTA) Tax

Together with state unemployment tax systems, the FUTA

tax provides funds for paying unemployment

compensation to workers who have lost their jobs. Most

employers pay both a federal and a state unemployment

tax.

You need to pay federal unemployment tax under the

FUTA, if you paid total cash wages of $1,000 or more in

any calendar quarter of 2024 or 2025 to household

employees.

The FUTA tax applies to the first $7,000 you pay to

each employee during a calendar year after subtracting

any payments exempt from FUTA tax. The FUTA tax rate

is 6.0% for 2025. But see Credit for contributions paid to

state next. Only employers pay FUTA tax. Don't collect or

deduct FUTA tax from your employee's wages. You must

pay it from your own funds.

Credit for contributions paid to state. You may be able

to take a credit of up to 5.4% against the FUTA tax,

resulting in a net FUTA tax rate of 0.6%. But to do so, you

must pay all the required contributions for 2025 to your

state unemployment fund by April 15, 2026. Fiscal year

filers must pay all required contributions for 2025 by the

due date of their federal income tax returns (not including

extensions).

State unemployment taxes are sometimes called

contributions. Contributions are payments that a state

requires you, as an employer, to make to its

unemployment fund for the payment of unemployment

benefits. However, contributions don't include:

• Any payments deducted or deductible from your

employees' pay;

• Penalties, interest, or special administrative taxes; or

• Voluntary contributions you paid to get a lower state

experience rate.

If you paid contributions to any credit reduction state,

see the instructions for line 23, later.

Lines 10 through 12. Answer the questions on lines 10

through 12 to see if you should complete Section A or

Section B of Part II.

Fiscal year filers. If you paid all state unemployment

contributions for 2025 by the due date of your return (not

including extensions), check the “Yes” box on line 11.

Check the “No” box if you didn't pay all of your state

contributions by the due date of your return.

Section A

Line 13. Name of the state where you paid unemployment contributions. Enter the two-letter abbreviation of

the name of the state (or the District of Columbia, Puerto

Rico, or the U.S. Virgin Islands) to which you paid

unemployment contributions. For a list of states and their

postal abbreviations, see State Names and Postal

Abbreviations, later.

Line 14. Contributions paid to your state unemployment fund. Enter the total of contributions (defined

earlier) you paid to your state unemployment fund for

2025. If you didn't have to make contributions because

your state gave you a 0% experience rate, enter “0% rate”

on line 14.

Line 15. Total cash wages subject to FUTA tax. Enter

the total of cash wages (see Cash wages, earlier) you paid

in 2025 to each household employee, including

employees paid less than $1,000. However, don't include

cash wages paid in 2025 to any of the following

individuals.

• Your spouse.

• Your child who was under age 21.

• Your parent.

If you paid any household employee more than $7,000

in 2025, include on line 15 only the first $7,000 of that

employee's cash wages.

Line 16. FUTA tax. Multiply the wages on line 15 by

0.6% (0.006). Enter the result on line 16.

Section B

Complete lines 17 through 24 only if you checked

a “No” box on line 10, 11, or 12.

CAUTION

Credit for 2025. The credit you can take for any state

unemployment fund contributions for 2025 that you pay

after April 15, 2026, is limited to 90% of the credit that

would have been allowable if the contributions were paid

on or before April 15, 2026.

Line 17. Complete all columns below that apply.

Complete all columns that apply. If you don't, you won't get

a credit. If you need more space, attach a statement using

the same format as line 17. Your state will provide the

experience rate. If you don't know your rate, contact your

state unemployment tax agency.

You must complete columns (a), (b), and (h), even if

you weren't given an experience rate. If you were given an

experience rate of 5.4% or higher, you must also complete

columns (c) and (d). If you were given a rate of less than

5.4%, you must complete all columns.

If you were given a rate for only part of the year, or the

rate changed during the year, you must complete a

separate line for each rate period.

Column (b). Taxable wages. Enter the taxable wages

on which you must pay taxes to the unemployment fund of

the state shown in column (a). If your experience rate is

0%, enter the amount of wages you would have had to pay

taxes on if that rate hadn't been granted.

Column (h). Contributions paid to state

unemployment fund. Enter the total contributions

(defined earlier) you paid to the state unemployment fund

for 2025 by April 15, 2026. Fiscal year filers, enter the total

contributions you paid to the state unemployment fund for

2025 by the due date of your return (not including

extensions). If you’re claiming excess credits as payments

of state unemployment contributions, attach a copy of the

letter from your state.

Line 18. Totals. Add the amounts in columns (g) and (h)

separately and enter the totals in the spaces provided.

Line 19. Add columns (g) and (h) of line 18. Add the

amounts shown in columns (g) and (h) of line 18. Enter the

total on line 19.

Line 20. Total cash wages subject to FUTA tax. Enter

the total cash wages subject to FUTA tax. See the

instructions for line 15, earlier.

Line 21. Multiply line 20 by 6.0% (0.06). Multiply the

wages on line 20 by 6.0% (0.06). Enter the result on

line 21.

Line 22. Multiply line 20 by 5.4% (0.054). Multiply the

wages on line 20 by 5.4% (0.054). Enter the result on

line 22.

Line 23. Enter the smaller of line 19 or line 22. Enter

the smaller of line 19 or line 22. However, if you paid state

unemployment contributions late or you're in a credit

reduction state, don't enter the smaller of line 19 or

line 22, as discussed next. You paid state unemployment

contributions late if you paid any state contributions after

the due date for filing Form 1040, 1040-SR, or 1040-SS

(not including extensions). You're in a credit reduction

state if you’re a household employer in a state which has

an amount greater than zero in the “Reduction Rate”

column of Worksheet 2.

If you paid state unemployment contributions late,

TIP use Worksheet 1 to figure the amount to enter on

line 23. If you're in a credit reduction state, use

Worksheet 2 to figure the amount to enter on line 23. If you

paid state contributions late and you're also in a credit

reduction state, complete Worksheet 1 before completing

Worksheet 2. If you didn't pay any state unemployment

contributions late and you're not in a credit reduction state,

you don't need to complete Worksheet 1 or Worksheet 2.

Part III. Total Household Employment Taxes

Line 25. Enter the amount from line 8. Enter the

amount from line 8. If there is no entry on line 8, enter -0-.

Line 26. Add line 16 (or line 24) and line 25. Add the

amounts on lines 16 and 25. If you were required to

complete Section B of Part II, add the amounts on lines 24

and 25 and enter the total on line 26.

Line 27. Are you required to file Form 1040? Follow

the instructions in the following chart.

IF you file Form. . .

THEN enter the amount from

Schedule H, line 8 or, if

applicable, line 26, on...

1040 or 1040-SR

Schedule 2 (Form 1040), line 9.

1040-NR

Schedule 2 (Form 1040), line 9.

1040-SS

Form 1040-SS, Part I, line 4.

1041

Form 1041, Schedule G, Part I,

line 7.

If you don't file any of the above forms, complete

Schedule H, Part IV, and follow the instructions under

When and Where To File, earlier.

Paid Preparers

Paid Preparer Use Only. You must complete this part if

you were paid to prepare Schedule H, aren't an employee

of the filing entity, and aren't attaching Schedule H to Form

1040, 1040-SR, 1040-SS, 1040-NR, or 1041. You must

Schedule H in addition to the copy to be filed with the IRS.

Completing Form W-2 and Form W-3

If you file one or more Forms W-2, you must also file Form

W-3. We encourage you to file electronically. If filing

electronically via the SSA's Form W-2 Online service, the

SSA will generate Form W-3 data from the electronic

submission.

You must report both cash and noncash wages in box 1

(Form 499R-2/W-2PR, box 7), as well as tips and other

compensation. For detailed information on preparing

these forms, see the General Instructions for Forms W-2

and W-3.

Employee's portion of taxes paid by employer. You’re

responsible for payment of your employee's share of the

taxes as well as your own. You can either withhold your

employee's share from the employee's wages or pay it

from your own funds. If you paid all of your employee's

share of social security and Medicare taxes, without

deducting the amounts from the employee's pay, the

employee's wages are increased by the amount of that tax

for income tax withholding purposes. However, the tax you

paid isn't counted as social security and Medicare wages

and isn't included in boxes 3 and 5 of Form W-2 (boxes 20

and 22 of Form 499R-2/W-2PR). Also, don't count the tax

as wages for FUTA tax purposes. Follow steps 1 through 3

below.

1. Enter the amounts you paid on your employee's

behalf in boxes 4 and 6 (boxes 21 and 23 of Form

499R-2/W-2PR). Don't include your share of these taxes.

2. Add the amounts in boxes 3, 4, and 6 (boxes 20, 21,

and 23 of Form 499R-2/W-2PR). However, if box 5 (box 22

of Form 499R-2/W-2PR) is greater than box 3 (box 20 of

Form 499R-2/W-2PR), then add the amounts in boxes 4,

5, and 6 (boxes 21, 22, and 23 of Form 499R-2/W-2PR).

3. Include the total in box 1 (box 7 of Form 499R-2/

W-2PR). Also include in box 1 any taxable noncash wages

which aren't reported in boxes 3 and 5 (boxes 20 and 22

of Form 499R-2/W-2PR).

On Form W-3, put an “X” in the “Hshld. emp.” box

TIP located in box b, Kind of Payer.

For information on filing Forms W-2 and W-3

electronically, go to the SSA's Employer W-2 Filing

Instructions & Information website at SSA.gov/employer.

Worksheet 1. Credit for Late Contributions

Enter the amount from Schedule H, line 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter the amount from Schedule H, line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subtract line 2 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter total contributions paid to the state(s) after the Form 1040 or 1040-SR due

date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter the smaller of line 3 or line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Multiply line 5 by 90% (0.90) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Add lines 2 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter the smaller of the amount on line 1 or line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Are you in a credit reduction state?

Yes. Enter the amount from line 8 above on Worksheet 2, line 1. Complete Worksheet 2 to figure the amount

to enter on Schedule H, line 23.

No. Enter the amount from line 8 on Schedule H, line 23.

State Names and Postal Abbreviations

State

Postal

Abbreviation

State

Postal

Abbreviation

State

Alabama

Indiana

Nevada

Tennessee

Alaska

Iowa

New Hampshire

Texas

Arizona

Kansas

New Jersey

Utah

Arkansas

Kentucky

New Mexico

Vermont

California

Louisiana

New York

Virginia

Colorado

Maine

North Carolina

Washington

Connecticut

Maryland

North Dakota

West Virginia

Delaware

Massachusetts

Ohio

Wisconsin

District of Columbia

Michigan

Oklahoma

Wyoming

Florida

Minnesota

Oregon

Puerto Rico

Georgia

Mississippi

U.S. Virgin

Islands

Hawaii

Missouri

Rhode Island

Idaho

Montana

South Carolina

Illinois

Nebraska

South Dakota

You Should Also Know

Estimated Tax Penalty

You may need to increase the federal income tax withheld

from your pay, pension, annuity, etc., or make estimated

tax payments to avoid an estimated tax penalty based on

your household employment taxes shown on Schedule H,

line 26. You may increase your federal income tax

withheld by giving your employer a new Form W-4, or by

giving the payer of your pension a new Form W-4P. Make

estimated tax payments by filing Form 1040-ES,

Estimated Tax for Individuals. For more information, see

Pub. 505.

Note. Household employers located in Puerto Rico make

estimated tax payments by filing Form 1040-ES (sp).

Pennsylvania

Postal

Abbreviation

State

Postal

Abbreviation

Estimated tax payments must be made as the tax

liability is incurred by April 15, 2025; June 16,

CAUTION 2025; September 15, 2025; and January 15,

2026. If you file your 2025 Form 1040 or 1040-SR by

January 31, 2026, and pay the rest of the tax you owe, you

don't need to make the payment due on January 15, 2026.

For more information, see Pub. 505.

Exception. You won't be penalized for failure to make

estimated tax payments if both (1) and (2) below apply for

the year.

1. You won't have federal income tax withheld from

wages, pensions, or any other payments you receive.

2. Your income taxes, excluding your household

employment taxes, wouldn't be enough to require

payment of estimated taxes.

Keep for Your Records

Worksheet 2. Household Employers in a Credit Reduction State

1. Enter the smaller of the amount from Schedule H, line 19 or line 22. (However, if you completed

Worksheet 1, enter the amount from line 8 of that Worksheet 1.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter the total taxable FUTA wages from Schedule H, line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Place an “X” in the box of EVERY state in which you had to pay state unemployment tax this year. If all of the states you check have a

credit reduction rate of zero, you don't have to complete this Worksheet 2. For each state with a credit reduction rate greater than zero, enter

the FUTA taxable wages, multiply by the reduction rate, and then enter the credit reduction amount. Don't enter your state unemployment

wages in the FUTA Taxable Wages box. Also don't include in the FUTA Taxable Wages box wages that were excluded from state

unemployment tax. If any states don't apply to you, leave them blank.

Postal Abbreviation FUTA Taxable

Wages

Reduction Credit Reduction Postal Abbreviation

Rate

FUTA Taxable

Wages

Reduction

Rate

x 0.000

x 0.012

x 0.000

x 0.045

x 0.000

4. Total Credit Reduction. Add all amounts shown in the Credit Reduction boxes. Enter the

total here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Subtract line 4 of this Worksheet 2 from line 1 of this Worksheet 2 and enter the result here and on

Schedule H, line 23. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Credit Reduction

What Records To Keep

You must keep copies of Schedule H and related Forms

W-2, W-3, and W-4 for at least 4 years after the due date

for filing Schedule H or the date the taxes were paid,

whichever is later. You must also keep records to support

the information you enter on the forms you file. Copies

must be submitted to the IRS if requested. If you must file

Form W-2, you will need to keep a record of each

employee's name, address, and SSN. Each payday, you

should record and keep the dates and amounts of:

• Cash and noncash wage payments,

• Any employee social security tax you withhold or agree

to pay for your employee,

• Any employee Medicare tax you withhold or agree to

pay for your employee,

• Any federal income tax you withhold, and

• Any state employment taxes you withhold.

What Is the Earned Income Credit

(EIC)?

The EIC is a refundable tax credit for certain workers.

Which employees must I notify about the EIC? You

must notify your household employee about the EIC if you

agreed to withhold federal income tax from the employee's

wages but didn't do so because the income tax

withholding tables showed that no tax should be withheld.

You’re encouraged to notify each employee whose

TIP wages for 2025 were less than $61,555 ($68,675

if married filing jointly) that the employee may be

eligible for the EIC for 2025.

How and when must I notify my employees? You

must give the employee one of the following items.

• The official IRS Form W-2, which has the required

information about the EIC on the back of Copy B.

• A substitute Form W-2 with the same EIC information

on the back of the employee's copy that is on Copy B of

the official IRS Form W-2.

• Notice 797, Possible Federal Tax Refund Due to the

Earned Income Credit (EIC).

• Your written statement with the same wording as Notice

797.

If the notification isn't given on Form W-2 in a timely

manner, you must hand the notice directly to the employee

or send it by First-Class Mail to the employee's last known

address.

If you’re not required to give the employee a Form W-2,

you must provide the notification by February 9, 2026.

How do my employees claim the EIC? Eligible

employees claim the EIC on their 2025 tax returns.

Rules for Business Employers

Don't use Schedule H if you chose to report employment

taxes for your household employees along with your other

employees on Form 941 or 941 (sp), Employer's

QUARTERLY Federal Tax Return; Form 943, Employer's

Annual Federal Tax Return for Agricultural Employees; or

Form 944, Employer's ANNUAL Federal Tax Return. If you

report this way, be sure to include your household

employees' wages on your Form 940, Employer's Annual

Federal Unemployment (FUTA) Tax Return.

State Disability Payments

Certain state disability plan payments to household

employees are treated as wages subject to social security

and Medicare taxes. If your employee received payments

from a plan that withheld the employee's share of social

security and Medicare taxes, include the payments on

lines 1, 3, and, if applicable, 5 of Schedule H and

complete the rest of Part I through line 7. Add lines 2, 4, 6,

and 7. (Household employers located in Puerto Rico, add

lines 2, 4, and 6.) From that total, subtract the amount of

these taxes withheld by the state. Enter the result on

line 8. Also, enter “disability” and the amount subtracted

on the dotted line next to line 8. See the notice issued by

the state for more details.

How To Correct Schedule H

If you discover an error on a Schedule H that you

previously filed with Form 1040, 1040-SR, or 1040-NR, file

Form 1040-X, Amended U.S. Individual Income Tax

Return, and attach a corrected Schedule H. If you

discover an error on a Schedule H that you previously filed

with Form 1040-SS, file a “Corrected” Form 1040-SS and

attach a corrected Schedule H. If you discover an error on

a Schedule H that you previously filed with Form 1041, file

an “Amended” Form 1041 and attach a corrected

Schedule H.

If you discover an error on a Schedule H that you filed

as a stand-alone return, file another stand-alone

Schedule H with the corrected information. In the top

margin of your corrected Schedule H, write (in bold letters)

“CORRECTED” followed by the date you discovered the

error.

Note. Household employers located in Puerto Rico that

discover an error on a Schedule H previously filed with

Form 1040-PR, file a “Corrected” Form 1040-PR and

attach a corrected Schedule H-PR.

If you owe tax, pay the tax in full with your Form 1040-X,

“Corrected” Form 1040-SS or 1040-PR, “Amended” Form

1041, or stand-alone Schedule H. If you overpaid tax on a

previously filed Schedule H, then, depending on whether

you adjust or claim a refund, you must certify that you

repaid or reimbursed the employee's share of social

security and Medicare taxes, or that you have obtained

consents from your employees to file a claim for refund for

the employee tax. See Pub. 926 for complete instructions.

How To Get Forms and Publications

To get the IRS forms and publications mentioned in these

instructions (including Notice 797), go to IRS.gov/Forms.

Do You Have To File Form 1040, 1040-SR, 1040-SS, 1040-NR, or 1041?

Yes — Attach Schedule H to that form and mail to the address in your tax return instructions.

No — Mail your completed Schedule H and payment to the address shown below that applies to you. No street address

is needed. See When and Where To File, earlier, for the information to enter on your payment.

IF you live in...

THEN use this address...

Alabama, Arizona, Arkansas, Florida, Georgia, Louisiana, Mississippi,

New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee,

Texas

Department of the Treasury

Internal Revenue Service

Austin, TX 73301-0002

Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa,

Kentucky, Maine, Maryland, Massachusetts, Minnesota, Missouri, New

Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont,

Virginia, West Virginia, Wisconsin

Department of the Treasury

Internal Revenue Service

Kansas City, MO 64999-0002

Alaska, California, Colorado, Hawaii, Idaho, Kansas, Michigan, Montana,

Nebraska, Nevada, Ohio, Oregon, North Dakota, South Dakota, Utah,

Washington, Wyoming

Department of the Treasury

Internal Revenue Service

Ogden, UT 84201-0002

A foreign country, a U.S. territory,* or use an APO or FPO address, or file

Form 2555 or 4563, or are a dual-status alien

Department of the Treasury

Internal Revenue Service

Austin, TX 73301-0215

* If you live in American Samoa, Puerto Rico, Guam, the U.S. Virgin Islands, or the Commonwealth of the Northern Mariana Islands,

see Pub. 570.

Privacy Act and Paperwork Reduction Act Notice. We

ask for the information on this form to carry out the Internal

Revenue laws of the United States. You’re required to give

us the information. We need it to ensure that you’re

complying with these laws and to allow us to figure and

collect the right amount of tax. If you don't provide the

information we ask for, or provide false or fraudulent

information, you may be subject to penalties.

You’re not required to provide the information requested

on a form that is subject to the Paperwork Reduction Act

unless the form displays a valid OMB control number.

Books or records relating to a form or instructions must be

retained as long as their contents may become material in

the administration of any Internal Revenue law.

Subtitle C, Employment Taxes, of the Internal Revenue

Code imposes employment taxes on wages and provides

for income tax withholding. This form is used to determine

the amount of the taxes that you owe. Section 6011

requires you to provide the requested information if the tax

is applicable to you. Section 6109 requires you to provide

your identification number.

Generally, tax returns and return information are

confidential, as required by section 6103. However,

section 6103 allows or requires the IRS to disclose or give

the information shown on your tax return to others as

described in the Code. For example, we may disclose your

tax information to the Department of Justice for civil and

criminal litigation, and to cities, states, the District of

Columbia, and U.S. commonwealths and territories to

administer their tax laws. We may also disclose this

information to other countries under a tax treaty, to federal

and state agencies to enforce federal nontax criminal

laws, or to federal law enforcement and intelligence

agencies to combat terrorism.

The time needed to complete and file this form will vary

depending on individual circumstances. The estimated

burden for individual taxpayers filing this form is approved

under OMB control number 1545-0074 and is included in

the estimates shown in the instructions for their individual

income tax return.

The estimated burden for all other taxpayers who file

this form is:

Recordkeeping . . . . . . . . . . . . . . . . . . . . .

Learning about the law or the form. . . . . . . .

Preparing the form . . . . . . . . . . . . . . . . . .

Copying, assembling, and sending the form

to the IRS . . . . . . . . . . . . . . . . . . . . . . . . .

1 hr., 38 min.

39 min.

1 hr., 3 min.

34 min.

If you have comments concerning the accuracy of

these time estimates or suggestions for making this form

simpler, we would be happy to hear from you. You can

send us comments from IRS.gov/FormComments. Or you

can send your comments to Internal Revenue Service, Tax

Forms and Publications Division, 1111 Constitution Ave.

NW, IR-6526, Washington, DC 20224. Don't send

Schedule H (Form 1040) to this address. Instead, see

When and Where To File, earlier.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.