Schedule IN-H

This article provides a comprehensive guide on Indiana Schedule IN-H, used to report and pay state and county income taxes withheld from household employees. It includes detailed explanations of what the form is, how to file it, and step-by-step instructions on how to complete each section.

Indiana Schedule IN-H is a tax document required for individuals who employ household workers and withhold Indiana state and/or county income taxes from their wages. This form is used to summarize household employment taxes, report state and county taxes withheld, and ensure proper documentation is included with the employer’s individual income tax return (Form IT-40 or IT-40PNR).

Household employees typically include individuals who work in a private home, such as a nanny, housekeeper, or caregiver. Employers must file Schedule IN-H if they filed federal Schedule H to report household employment taxes and withheld Indiana state or county taxes from their employees’ wages. This form also requires employers to submit W-2 forms for each household employee to verify the taxes withheld. Schedule IN-H allows employers to fulfill their tax obligations while ensuring compliance with Indiana state tax laws.

How To File Indiana Schedule IN-H

  1. Determine Eligibility to File Schedule IN-H:
    • You must have filed federal Schedule H for the tax year.
    • You must have withheld state and/or county income taxes for one or more household employees during the year.
  2. Gather Required Documentation:
    • Collect W-2 forms for each household employee, showing state and/or county taxes withheld.
    • Obtain your Federal Employer Identification Number (FEIN) or Social Security Number (SSN), as applicable.
  3. Attach Schedule IN-H to Your Tax Return:
    • Enclose Schedule IN-H with your Form IT-40 or IT-40PNR when filing your Indiana Individual Income Tax Return.
  4. Filing Deadline:
    • File Schedule IN-H by the standard Indiana individual income tax deadline, which is typically April 15.
How To Complete Schedule IN-H: Line-by-Line Instructions

How To Complete Schedule IN-H: Line-by-Line Instructions

Part 1 – Summary of Household Employment Taxes

  1. Line 1: Total State Tax Withheld
    • Enter the total Indiana state income tax withheld for all household employees. This amount is calculated from Part 2, Line 2.
  2. Line 2: Total County Tax Withheld
    • Enter the total Indiana county income tax withheld for all household employees. This amount is calculated from Part 2, Line 3.
  3. Line 3: Total Taxes Withheld
    • Add the amounts from Line 1 and Line 2. Enter the total here.
    • This amount must also be entered on your Indiana individual income tax return:
      • Form IT-40: Schedule 4, Line 2.
      • Form IT-40PNR: Schedule E, Line 2.
  4. Federal Schedule H Filing Confirmation:
    • Answer “Yes” or “No” to indicate if you filed federal Schedule H for the same tax year. If “No,” you cannot file Schedule IN-H.
  5. State and County Tax Withholding Confirmation:
    • Answer “Yes” or “No” to confirm whether you withheld state and/or county income taxes from your household employees. If “No,” you cannot file this schedule.
  6. Enclose Employee W-2 Forms:
    • Ensure you attach the state copy of each employee’s W-2 form to validate the taxes withheld.

Part 2 – State and County Tax Withholding

This section requires you to report detailed information for each household employee, including their income and taxes withheld. If you have more than three employees, attach additional pages as necessary.

  1. Employee Name and Social Security Number:
    • Enter the full name (first, middle initial, last) and Social Security number of each household employee as it appears on their W-2 form.
  2. Line 1: Income Subject to Federal Tax Withholding:
    • Enter the amount of income on which you are withholding federal income tax for the employee. This amount should also appear in Boxes 16 and 18 on the employee’s W-2 form.
  3. Line 2: Indiana State Tax Withheld:
    • Enter the amount of Indiana state tax withheld from the employee’s wages. This amount should also appear in Box 17 on the W-2 form, with “IN” listed in Box 15.
  4. Line 3: Indiana County Tax Withheld:
    • Enter the amount of Indiana county tax withheld from the employee’s wages. This amount should also appear in Box 19 on the W-2 form.
  5. Line 4: County Code:
    • Enter the 2-digit county code corresponding to the county where the taxes were withheld. Refer to Indiana Departmental Notice #1 for the correct county codes.
  6. Repeat for Additional Employees:
    • Complete Lines 1 through 4 for each household employee. If you have more than three employees, attach additional sheets and follow the same format.
  7. Summary Totals:
    • Add the amounts from Line 2 (state tax withheld) for all employees and enter the total in Part 1, Line 1.
    • Add the amounts from Line 3 (county tax withheld) for all employees and enter the total in Part 1, Line 2.

Additional Notes and Tips

  1. Calculating State and County Withholding:
    • Use Form WH-4 and Indiana Departmental Notice #1 to calculate the correct amounts for state and county income tax withholding. These resources provide guidance on determining withholding rates and county codes.
  2. Ensure Accurate W-2 Forms:
    • Double-check that the amounts reported on Schedule IN-H match the amounts on the employees’ W-2 forms. Any discrepancies could delay processing or result in penalties.
  3. Recordkeeping:
    • Keep copies of all W-2 forms, Schedule IN-H, and related documents for your records in case of an audit or inquiry.
  4. Penalties for Noncompliance:
    • Failure to file Schedule IN-H or properly withhold taxes may result in penalties, interest, or other legal consequences.
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