What is IRS Form 8959?
Jul 09, 2021 · About Form 8959, Additional Medicare Tax About Form 8959, Additional Medicare Tax Use this form to figure: the amount of Additional Medicare Tax you owe and the amount of Additional Medicare Tax withheld by your employer, if any. Current Revision Form 8959 PDF Instructions for Form 8959 ( Print Version PDF) Recent Developments None at this time.
How to calculate additional Medicare tax properly?
If you don't owe Additional Medicare Tax, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959. If you have both wages and self-employment income, the threshold amount for applying Additional Medicare Tax on the self-employment income is reduced (but not below zero) by the amount of …
When do you pay additional Medicare tax?
Attach Form 8959 to your return. If you are filing Form 8959, you must file one of the forms listed above. Additional Medicare Tax. A 0.9% Additional Medicare Tax applies to your Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above a threshold amount.
Do Medicare deductions reduce the taxable amount of my income?
Form 8959 - Additional Medicare Tax Reconcile Against Form W-2 The Additional Medicare Tax is an additional (0.9%) tax to wages, compensation, and self-employment income, if an individual's income exceeds the threshold amount for their individual filing status. This is a new tax added by the creation of the Affordable Care Act (ACA).
Should I file Form 8959?
The tax applies to wages from employment, self-employment income and railroad retirement income, but if you are receiving W-2 income, the tax will most likely be withheld from your wages. Either way, anyone subject to the tax is required to file Form 8959 with their annual income tax filing.Oct 16, 2021
What is the additional Medicare tax for 2021?
2021 updates. For 2021, an employee will pay: 6.2% Social Security tax on the first $142,800 of wages (maximum tax is $8,853.60 [6.2% of $142,800]), plus. 1.45% Medicare tax on the first $200,000 of wages ($250,000 for joint returns; $125,000 for married taxpayers filing a separate return), plus.Oct 15, 2020
Who is subject to the additional Medicare tax?
If you are a high earner, you are subject to the 0.9% additional Medicare tax on earned income in excess of the threshold amount. The threshold amounts are based on your filing status: Single, head of household, or qualifying widow(er) — $200,000. Married filing jointly — $250,000.
What is the additional Medicare tax for 2020?
The FICA tax rate, which is the combined Social Security rate of 6.2 percent and the Medicare rate of 1.45 percent, remains 7.65 percent for 2020 (or 8.55 percent for taxable wages paid in excess of the applicable threshold).
Who pays additional Medicare tax 2021?
The Additional Medicare Tax applies to people who are at predetermined income levels. For the 2021 tax year, those levels are: Single tax filers: $200,000 and above. Married tax filers filing jointly: $250,000 and above.
What is the Form 8959?
Use Form 8959 to figure the amount of Additional Medicare Tax you owe and the amount of Additional Medicare Tax withheld by your employer, if any. You will carry the amounts to one of the following returns.Dec 6, 2021
What is additional tax?
Additional Tax means an additional federal income tax on certain Non-Qualified Distributions.
Do I have Medicare if I pay Medicare tax?
According to the Internal Revenue Service (IRS), taxes withheld from your pay help pay for Medicare and Social Security benefits. If you're self-employed, you generally still need to pay Medicare and Social Security taxes. Payroll taxes cover most of the Medicare program's costs, according to Social Security.
What happens if I don't get my W-2?
Tax topics are available at IRS.gov/TaxTopics. Even if you don't get a Form W-2, you must still figure your Additional Medicare Tax. If you lose your Form W-2 or it is incorrect, ask your employer for a new one. Forms W-2 of U.S. possessions.
Where to enter Medicare wages and tips on W-2?
Enter your Medicare wages and tips from box 5 of your Form W-2. If you have more than one Form W-2, enter the total of the amounts from box 5 of all Forms W-2. If you are filing a joint return, also include your spouse’s wages and tips.
What is Medicare Form 8959?
Use Form 8959 to figure the amount of Additional Medicare Tax you owe and the amount of Additional Medicare Tax withheld by your employer, if any . You will carry the amounts to one of the following returns.
What line on 4137 is unreported?
Enter unreported tips from line 6 of Form 4137, Social Security and Medicare Tax on Unreported Tip Income. If you are filing a joint return, also include the amount from line 6 of your spouse's Form 4137.
What happens if you don't report tips to your employer?
You can avoid this penalty if you can show that your failure to report tips to your employer was due to reasonable cause and not due to willful neglect. To do so, you can attach a statement to your return explaining why you didn't report them or submit a statement in response to a notice regarding a proposed penalty assessment. For more information about tip reporting, seePub. 531.
What line do you enter wages on 8919?
Enter wages from line 6 of Form 8919, Uncollected Social Security and Medicare Tax on Wages. If you are filing a joint return, also include the amount from line 6 of your spouse's Form 8919.
What line on 4137 is unreported?
Enter unreported tips from line 6 of Form 4137, Social Security and Medicare Tax on Unreported Tip Income. If you are filing a joint return, also include the amount from line 6 of your spouse's Form 4137.
What line do you enter wages on 8919?
Enter wages from line 6 of Form 8919, Uncollected Social Security and Medicare Tax on Wages. If you are filing a joint return, also include the amount from line 6 of your spouse's Form 8919.
What line on 4137 is unreported?
Enter unreported tips from line 6 of Form 4137, Social Security and Medicare Tax on Unreported Tip Income. If you are filing a joint return, also include the amount from line 6 of your spouse's Form 4137.
What line do you enter wages on 8919?
Enter wages from line 6 of Form 8919, Uncollected Social Security and Medicare Tax on Wages. If you are filing a joint return, also include the amount from line 6 of your spouse's Form 8919.
