Rev. 2023
Form 8959 is for calculating and reporting Additional Medicare Tax on Medicare wages, self-employment income, and railroad retirement compensation. Part I calculates tax on Medicare wages, Part II on self-employment income, and Part III on railroad retirement compensation. The total Additional Medicare Tax from all parts is entered in Part IV. Withholding Reconciliation in Part V determines the Additional Medicare Tax withheld versus paid.
Railroad Retirement Income Tax Act (RRTA) Compensation refers to income from railroad employment subject to a separate tax that supports the Railroad Retirement System. It's included in Box 12 of Form W-2.
Form 8959 is filed as an attachment to your federal income tax return (Form 1040, 1040-SR, 1040-NR, or 1040-SS) when you owe Additional Medicare Tax. It is important that you keep accurate records of your wages, tips, other compensation, and self-employment income to properly complete the form.
Form 8959 reports the Additional Medicare Tax owed for an individual's wages, tips, other compensation, and self-employment income. It also includes the amount of withheld and paid by the employer or the employee representative subject to RRTA taxes.
Individuals and married couples filing jointly who owe Additional Medicare Tax are required to file Form 8959. This includes those with wages, tips, other compensation, or self-employment income exceeding certain thresholds.
The deadline for filing Form 8959 is usually April 15th, but it can be extended if you request an extension. Check the instructions and the calendar on the IRS website for the exact deadline.
Withholding Reconciliation is the process of comparing the total amount of Additional Medicare Tax that was withheld from your wages and tips with the total amount you owe. If more was withheld, you'll receive a refund. Otherwise, you'll owe the difference.
You generally need to file Form 8959 if you had wages, tips, or RRTA compensation and your income is over the threshold. Check the instructions for Form 8959 to see if you need to file.
Additional Medicare Tax is an extra 0.9% tax on wages, tips, and RRTA compensation over certain thresholds. It's imposed if you didn't have enough Medicare tax withheld or if your employer didn't pay enough.
Form 8959, Additional Medicare Tax, is used to figure and report the Additional Medicare Tax on wages, tips, other compensation, and self-employment income. It is required when an individual, or a married filing jointly couple, owes Additional Medicare Tax.
No, you don't need to submit Form W-2 for your spouse if you file jointly. However, report any RRTA compensation or Additional Medicare Tax paid by your spouse in Part V of Form 8959.
To complete Part V, determine the total amount of Additional Medicare Tax withheld from your wages and tips. Then, add any uncollected Medicare tax on tips and group-term life insurance over $50,000. Report this total in Box 24 of Form 8959.
To determine your Additional Medicare Tax liability, calculate the amount of wages and tips that are above the threshold. Then, multiply this amount by 0.9% to find the additional tax due. File Form 8959 to report and pay the tax.
Form 8959 is one of Tax forms that are documents used to report information related to taxes to the relevant tax authority. There are various types of tax forms, including federal, state, and local tax forms, which can vary depending on the taxpayer's circumstances and location.
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