Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Every year I owe taxes. I have 0 withholdings (which I

Every year I owe...

Every year I owe taxes. I have 0 withholdings (which I thought took out the most from my paycheck?) and so does my husband. We have a nanny but we pay nanny taxes as we go through Care.com so that should be all paid up. And now TurboTax tells me that I somehow owe on the order of $30K. What should I do to prevent this from happening every year?

Accountant's Assistant: What state are you in? It matters because laws vary by location.

CA

Accountant's Assistant: What steps have you taken so far?

TurboTax but thinking I might need a proper accountant...

Show More
Show Less
Ask Your Own Tax Question
Answered in 1 minute by:
3/17/2018
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,013
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi. My name’s Lane.

...

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

Bear with me just a moment.

I'm reviewing your question now and typing up my reply.

...

I'll post that in just a few moments. Then, let me know if you have further questions on this.

Ask Your Own Tax Question

With the assumption that you've done everything right on the return itself, the only thing that you can do is pay quarterly estimated taxes.

...

When you look at the return, are you getting credit for any withholding Care.com is doing?

Ask Your Own Tax Question

In looking at Care.com it appears that they will handle the filing? See this: "Our HomePay experts can take care of all the work for you. From handling all the paperwork to actually filing your returns, we take care of everything. If this sounds like the better option for your family, contact our office or feel free to get started online"

...

Again, what comes to mind is that you may not be getting credit for the withholding that they're doing on your behalf.

Ask Your Own Tax Question
Customer reply replied 1 month ago
With Care.com I paid everything quarterly and I got a Schedule H and a 1040 ES Payment Summary. I just entered this into TurboTax and my "owed" amount ballooned from ~10K to >$37K? Something has to be amiss here...

However, if everything's right with the return, the answer to your question is that you'll need to make estimated taxes every quarter, becasue the tax is just added to your tax liability

...

OK let me look

Ask Your Own Tax Question
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 5,804
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

Different expert here - my name is ***** ***** I have a different answer.

It sounds like you haven't claimed credit for the withholding that you've paid for the employee. You have to actually enter that information in TurboTax under Deductions and Credits.

Enter the amount of your withholding for your nanny in Estimates and Other Taxes Paid.

After you finish entering your information in the Nanny Tax section, go to

Federal Taxes

Deductions and Credits

Estimates and Other Taxes Paid

select Estimates.

Choose Federal Estimated Taxes, and enter the amounts that you paid quarterly for your household employee.

See if that works before you efile your return owing $30,000.

Thank you and best regards,

Barb

Ask Your Own Tax Question

By the way, If you pay your household employment taxes with your business employment taxes, you must report your household employment taxes with those other employment taxes on Form 941, Employer's QUARTERLY Federal Tax Return, Form 944, Employer's ANNUAL Federal Tax Return, or Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, and on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return."

...

You can delete your Schedule H from your return as long as your payroll company has filed all required federal returns associated with your domestic employee. The purpose of the Schedule H is to ensure the payroll taxes are paid and the income is reported to the IRS. Since filing Forms 941, 940, and W-2 accomplishes this goal you are not required to also file a Schedule H.

Ask Your Own Tax Question

This may also help - depending on what you've set up with Care.com:

...

"What taxes are remitted and how do you collect them from me?

Since you only pay your employee the net pay amount each pay period, the tax withholdings remain in your bank account. At the end of the tax period, all the taxes you withheld from your employee—plus your employer taxes– need to be remitted. We calculate the appropriate amounts that need to go to federal and state tax agencies and provide you with advance notice of the amount due and collection date. All you need to do is make sure your account is adequately funded at least one business day prior to the collection date; we take responsibility for sending the proper amounts to the proper tax agencies by the deadlines."

Ask Your Own Tax Question

In the even you'd like to talk this through I've made what's called an additional services offer here. (Made it for the smallest amount possible, $5)

...

But we can also continue here

...

let me know,

Lane

Ask Your Own Tax Question

OK, well, I hope this has helped .. again, the exact answer depends on how your taxes are being handled with care.com (but to presume that this isn't being handled as employer taxes and paid in through the service would be presumptive at this point) so EXACTLY what has to be done requires a little more specificity from you.

...

I'll be here,

...

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars on your screen, and then clicking “submit")

That’s the only way JustAnswer.com will credit me for the work.

...

But again, let me know if you need more here,

Lane

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,013
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 1 month ago
Just accepted the phone call offer. Can you call me?

Yes, give a sec ... your number's not coming up

Ask Your Own Tax Question

Got it ... give me a sec to clear the desk

Ask Your Own Tax Question
Was this answer helpful?
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,013
14,013 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
If there is no federal tax liability in 2016 because there
If there is no federal tax liability in 2016 because there was no income in 2016, what is the minimum estimated tax that needs to be sent with the extension for 2017 to avoid a penalty?… read more
abci168
abci168
Principal
27 satisfied customers
The IRS sent me the form 1041-ES quarterly estimated
Hi, the IRS sent me the form 1041-ES quarterly estimated payments for a trust that was dissolved in 2016. There was no income in 2017. What do I do? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I'm on Federal Disability, on my Federal Tax forms there are
I'm on Federal Disability, on my Federal Tax forms there are special provisions for this income. How do I handle it on my California State Income tax filling Married Joint? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
On line 17, Form 1120 ,C Corp Federal Tax return are state
On line 17, Form 1120 ,C Corp Federal Tax return are state corporate income taxes deductible.If I am doing my Federal C Corp returns for 2017 are the state corporate income taxes due but not paid yet … read more
Barbara
Barbara
Enrolled Agent
5,804 satisfied customers
I filed my state and federal taxes electronically and then
I filed my state and federal taxes electronically and then realized that I accidentally omitted something that significantly changes my refund from the federal and my payment to the state. I need to f… read more
Barbara
Barbara
Enrolled Agent
5,804 satisfied customers
Paying quarterly estimated taxes for a 2 member LLC (
Paying quarterly estimated taxes for a 2 member LLC ( Husband and wife ) that is operating as a Partnership and did not elect to be classified as a corporation... Am I understanding correctly that thi… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,080 satisfied customers
State and federal tax question. My wife creates jewelry at
State and federal tax question. My wife creates jewelry at home to sell. She sells it online and to the general public. She sells it to individuals and at events. She does pay N.C. state tax quarterly… read more
Barbara
Barbara
Enrolled Agent
5,804 satisfied customers
If I claim 2 sons as dependents on my federal taxes can they
if I claim 2 sons as dependents on my federal taxes can they also file? They are both full-time students one grosses $14334 and the other $10063. Please advise … read more
Lane
Lane
JD, CFP, MBA, CRPS
14,013 satisfied customers
I filed a 941 for my household nanny and a schedule H. I was
I filed a 941 for my household nanny and a schedule H. I was contacted by the SSA stating I paid nearly double in 2014 and I have been dealing with this ever since. I finally got something from the IR… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
828 satisfied customers
The new federal tax law doubles the amount of money that's
The new federal tax law doubles the amount of money that's automatically exempt from the federal estate tax -- to roughly $11 million of an estate for someone who was unmarried. The provision remains … read more
Lane
Lane
JD, CFP, MBA, CRPS
14,013 satisfied customers
I entered the federal tax withholding as my state tax
I entered the federal tax withholding as my state tax withholding. I discovered my error after I received my refund check. I actually owe $178. How do I send back the refund money? … read more
Barbara
Barbara
Enrolled Agent
5,804 satisfied customers
Are there federal tax credits for installing a new furnace,
Are there federal tax credits for installing a new furnace, A/C system and attic and wall insulation? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Can the state of Oregon offset a federal return for non-tax
Hello! Can the state of Oregon offset a federal return for non-tax related debt. I have an outstanding balance on my student account at a state university. The state has already offset my state return… read more
Lane
Lane
JD, CFP, MBA, CRPS
14,013 satisfied customers
I have a federal tax lien filed 2015 with 2 assessment dates
I have a federal tax lien filed 2015 with 2 assessment dates in 2008 and 2009. you told me the both expire 2018 and 2019 respectively. how do I obtain an early release from the lien? I would like to p… read more
Lane
Lane
JD, CFP, MBA, CRPS
14,013 satisfied customers
Are religious (church) non-profits required to file state
Are religious (church) non-profits required to file state and federal taxes annually? … read more
Lane
Lane
JD, CFP, MBA, CRPS
14,013 satisfied customers
Will my filing of federal taxes by the April deadline be
Will my filing of federal taxes by the April deadline be according to the current set of laws (e.g. unlimited deduction of state and local taxes) or will the new "reformed" tax bill and its new rules … read more
Barbara
Barbara
Enrolled Agent
5,804 satisfied customers
Tax law.FICA Tax law. W-4 and W-2 payroll tax withholding
tax law.FICA Tax law. W-4 and W-2 payroll tax withholding from wages and salaries.gross pay and take home pay. number of hours measured direct work assigned by W-4 and W-2 forms. for Medicare eligibil… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Personal Estimated Federal Tax/Illinois payment: My federal
Personal Estimated Federal Tax/Illinois payment:My federal and IL taxes deducted on regular basis from pay check as employee. But I have S corp for which I know rough profit at 4th quarter since my ve… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,080 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x