What is IRS Form 8959?
Jul 09, 2021 · Information about Form 8959, Additional Medicare Tax, including recent updates, related forms and instructions on how to file. Use this form to figure the amount of Additional Medicare Tax you owe and the amount of Additional Medicare Tax …
How to calculate additional Medicare tax properly?
Jun 01, 2019 · This amount carries to your Form 1040, Line 16 as a payment towards your taxes, along with your Federal Income Tax Withheld. Your Additional Medicare Tax is calculated on Line 18 of your Form 8959. This tax carries to Line 62 of your Schedule 4 and then to Line 14 of your Form 1040 under "Other Taxes". So in essence, your Additional Medicare Tax is the difference …
When do you pay additional Medicare tax?
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 …
Do Medicare deductions reduce the taxable amount of my income?
Jan 29, 2020 · Why am I seeing: You have Additional Medicare Tax (Form 8959), and that's just one of the reasons the IRS requires you to file Form 1040. It seems you may be liable for the additional medicare tax because of your income level. This additional tax is reported on Form 8959. A 0.9% Additional Medicare Tax applies to Medicare wages, self-employment income, …
Why do I have additional Medicare tax form 8959?
Purpose of Form 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. Form 1040.
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.
Who needs to fill out 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
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 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 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 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 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.
