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: 14,861
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 5 months 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: 6,643
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: 14,861
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 5 months 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?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,861
14,861 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

4,512 satisfied customers

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

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

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

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 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
My husband and I usually file separate. Never together. last
Hi, My husband and I usually file separate. Never together. last year we bought our first home and feel that it would be beneficial to file together, what prevented us in the past was tax debt owed by… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I started a single-member LLC in California in 2015. I
I started a single-member LLC in California in 2015. I decided to do taxes using TurboTax. I managed to get my federal return completed. But TurboTax does not automatically handle California FTB Form … read more
Barbara
Barbara
Enrolled Agent
6,643 satisfied customers
I'm a COMMISSION ONLY, W2 employee. I get paid monthly. Some
I'm a COMMISSION ONLY, W2 employee. I get paid monthly. Some months I earn $0 and other months I can earn $20K. I know that say in Jan and Feb I earn $0 but in March l if I earn $20K I get taxed AS IF… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I live in the Philippines and did not visit the USA single
I live in the Philippines and did not visit the USA for a single day during 2014. Im now working on my taxes for 2014 year. I was expecting a large state refund since I live overseas. However, when I … read more
taxmanrog
taxmanrog
Master\u0027s Degree
1,042 satisfied customers
If my total gross pay is $2,791.67 and my number of exemptions
If my total gross pay is $2,791.67 and my number of exemptions I claim is 4 what would be my total tax withholding every two weeks from my paycheck. Also, if I were paid once a month would my withhold… read more
abci168
abci168
Principal
27 satisfied customers
Married couple lives in California -- one has a salary from
Married couple lives in California -- one has a salary from a University in New York State -- no work is performed for the salary -- if no withholding has occurred to which state should state income t… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
we have a nanny that we currently pay cash. what is the right
we have a nanny that we currently pay cash. what is the right way to compensate her in the eyes of the IRS?… read more
DanielleCPA
DanielleCPA
Certified Public Accountant
Bachelor's Degree
76 satisfied customers
Ive received my 2012 W2 and try to calculate my estimated
I've received my 2012 W2 and try to calculate my estimated tax return using Turbotax. It looks like I'll have to pay 2k unpaid taxes. Need help to figure out why I have to pay?… read more
abci168
abci168
Principal
27 satisfied customers
I am doing my taxes for 2009 and I entered my husband info
I am doing my taxes for 2009 and I entered my husband info in first and we were receiving 2,234 back and then when I put mu info in, it said we owe 2500.00! Why would that be?… read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
How many allowances should I claim to break even on taxes -----------
How many allowances should I claim to "break even" on taxes? -------------------------------------------------------- Currently I'm listed as Single 0 Allowances on my W4. But we'll be filing as Marri… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Hello! I am recently married and my husband and I need to fill
Hello! I am recently married and my husband and I need to fill out new W4's. I want to be sure we do this properly so that we do not owe any tax at the end of the year! But I also want as much money i… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Hello! I recently got a new job at a law firm, and I will
Hello! I recently got a new job at a law firm, and I will be making $12 an hour working full time (40 hours a week). My husband will be making approximately $200 a month working part time and is a gra… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am looking to hire a nanny - part-time 29 hours a week.
I am looking to hire a nanny - part-time 29 hours a week. Can I hire a nanny as a contract employee and supply her with a 1099 at the end of the year or do I need to without taxes each paycheck?… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
We hired through an agency a nanny for our kids. They pay
We hired through an agency a nanny for our kids. They pay her and treat her as an independent contractor. we suppliment her pay. I was planning on giving her a 1099 form. Is this correct? Also do I ne… read more
MequonCPA
MequonCPA
CPA Firm Owner
Master's Degree
2,165 satisfied customers
Both my husband and I filed 0 on our w2s. However, we ...
Both my husband and I filed 0 on our w2s. However, we still ended up owing about $800 for 2006. Is that really possible or could we have somehow done our taxes wrong through turbotax? our total income… read more
David Schneider
David Schneider
Tax Accountant
Self disciplined college classes
74 satisfied customers
My husband and I got married in 2005. We filed last year ...
My husband and I got married in 2005. We filed last year and owed money. My husband changed his exemptions from 2 to 0 last year, and I claimed 1 exemption on our W-4. We thought this would prevent us… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
retired as a union sheet metal worker in Calif. Now ...
retired as a union sheet metal worker in Calif. Now live in New Mexico. If union that is located in Calif withhold taxes, I will have to file every year with California as well as New Mexico. They can… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My wife and i filed our taxes jointly this year. She is ...
My wife and i filed our taxes jointly this year. She is filed as married and claiming 2 people. I am filed as married claiming nobody. We don't have children. I'm not sure if this is the correct way t… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 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