Instructions For Form 8959 - Additional Medicare Tax

2014

Department of the Treasury

Internal Revenue Service

Instructions for Form 8959

Additional Medicare Tax

Section references are to the Internal Revenue Code

self-employment loss should not be

(including the railroad retirement (RRTA)

unless otherwise noted.

considered for purposes of this tax. Railroad

compensation and tips of your spouse, if

retirement (RRTA) compensation should be

married filing jointly) is greater than the

Future Developments

separately compared to the threshold.

threshold amount for your filing status in the

chart on this page.

Your employer is responsible for

For the latest information about

withholding the 0.9% Additional Medicare

Your Medicare wages and tips include

developments related to Form 8959 and its

Tax on your Medicare wages or railroad

amounts from Form W-2, box 5; Form 4137,

instructions, such as legislation enacted after

retirement (RRTA) compensation paid in

line 6; and Form 8919, line 6.

they were published, go to

excess of $200,000 in a calendar year. Your

Your self-employment income includes

form8959.

employer is required to begin withholding

amounts from Schedule SE – Section A,

Additional Medicare Tax in the pay period in

Reminders

line 4, or Section B, line 6. But negative

which your wages or compensation for the

amounts should not be considered for

year exceed $200,000 and continue to

purposes of Form 8959.

Missing or incorrect Form W-2. Your

withhold it in each pay period for the

employer is required to furnish Form W-2 to

remainder of the calendar year.

Amounts Subject to

you no later than February 2, 2015. If you do

Additional Medicare Tax

More information. The IRS and the

not receive your Form W-2 by early

Treasury Department have issued final

February, use TeleTax Topic 154 to find out

All wages that are subject to Medicare tax

regulations (T.D. 9645) on the Additional

what to do. TeleTax topics are available by

are subject to Additional Medicare Tax to the

Medicare Tax. The final regulations are

calling 1-800-829-4477 or at

extent they exceed the threshold amount for

available at

irb/2013-51_IRB/

taxtopics. Even if you do not get a Form W-2,

your filing status. For more information on

ar10.html. For more information on

you must still figure your Additional Medicare

what wages are subject to Medicare tax, see

Additional Medicare Tax, visit

Tax. If you lose your Form W-2 or it is

the chart, Special Rules for Various Types of

and enter the following words in the search

incorrect, ask your employer for a new one.

Services and Payments, in section 15 of

box: Additional Medicare Tax.

Forms W-2 of U.S. Possessions.

Pub. 15 (Circular E), Employer’s Tax Guide.

References to Form W-2 on Form 8959 and

Who Must File

Your employer must withhold Additional

in these instructions also apply to Forms

Medicare Tax on wages it pays to you in

You must file Form 8959 if one or more of the

W-2AS, W-2CM, W-2GU, W-2VI, and

excess of $200,000 for the calendar year,

following applies to you.

499R-2/W-2PR. However, for Form 499R-2/

regardless of your filing status and

Your Medicare wages and tips on any

W-2PR, Medicare wages and tips are

regardless of wages or compensation paid

single Form W-2 (box 5) are greater than

reported in Box 19 and Medicare tax

by another employer.

$200,000.

withheld is reported in Box 20.

Your railroad retirement (RRTA)

All railroad retirement (RRTA)

compensation on any single Form W-2

General Instructions

compensation that is currently subject to

(box 14) is greater than $200,000.

Medicare tax is subject to Additional

Your total Medicare wages and tips plus

Medicare Tax to the extent it exceeds the

Purpose of Form

your self-employment income (including the

threshold amount for your filing status. A

Medicare wages and tips and

Use Form 8959 to figure the amount of

railroad employer must withhold Additional

self-employment income of your spouse, if

Additional Medicare Tax you owe and the

Medicare Tax on compensation it pays to

married filing jointly) are greater than the

amount of Additional Medicare Tax withheld

you in excess of $200,000 for the calendar

threshold amount for your filing status in the

by your employer, if any. You will carry the

year, regardless of your filing status and

chart on this page.

amounts to one of the following returns.

regardless of wages or compensation paid

Your total railroad retirement (RRTA)

by another employer.

Form 1040.

compensation and tips (Form W-2, box 14)

Form 1040NR.

Form 1040-SS.

Form 1040-PR.

Threshold Amounts for Additional Medicare Tax

Attach Form 8959 to your return.

Note. The threshold amounts below are not indexed for inflation.

If you are filing Form 8959, you

must file one of the forms listed

Filing Status

Threshold Amount

above. Do not attach Form 8959 to

CAUTION

Form 1040A, 1040EZ, or 1040NR-EZ.

Married filing jointly

$250,000

Additional Medicare Tax. A 0.9%

Married filing separately

$125,000

Additional Medicare Tax applies to your

Medicare wages, Railroad Retirement Tax

Single

$200,000

Act (RRTA) compensation, and

self-employment income above a threshold

Head of household

$200,000

amount. The threshold amounts are listed in

Qualifying widow(er) with dependent

the chart on this page.

child

$200,000

Medicare wages and self-employment

income are combined to determine if your

income exceeds the threshold. A

Nov 05, 2014

Cat. No. 53784D

Instructions For Form 8959 - Additional Medicare Tax - 2014

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