Instructions For Form 8959 - Additional Medicare Tax

Line 2

Kathleen and Liam are liable to pay

retirement (RRTA) compensation withheld

Additional Medicare Tax on $20,000 of

by your employer.

Enter unreported tips from line 6 of Form

Liam’s self-employment income ($140,000 in

4137, Social Security and Medicare Tax on

If you (and your spouse if filing a joint

self-employment income minus the reduced

Unreported Tip Income. If you are filing a

return) did not have Medicare wages or

threshold amount of $120,000, as figured on

joint return, also include the amount from

railroad retirement (RRTA) compensation,

line 12 of Form 8959). Kathleen and Liam

line 6 of your spouse's Form 4137.

leave Part V blank.

owe Additional Medicare Tax of $180.00

Line 3

($20,000 x .009, as figured on line 13 of

Line 19

Form 8959).

Enter wages from line 6 of Form 8919,

Enter the amount of Medicare tax withheld, if

Uncollected Social Security and Medicare

any, which is reported on Form W-2, box 6. If

Part III—Additional

Tax on Wages. If you are filing a joint return,

you have more than one Form W-2, add the

Medicare Tax on Railroad

also include the amount from line 6 of your

amounts in box 6 of all your Forms W-2 and

spouse's Form 8919.

Retirement Tax Act (RRTA)

enter the total here. If you are filing a joint

return, also include your spouse’s Medicare

Line 7

Compensation

tax withheld.

Multiply line 6 by 0.9% (.009). This is your

If you (and your spouse if filing a joint return)

Additional Medicare Tax on your wages.

Note. Both Medicare tax and Additional

did not have railroad retirement (RRTA)

Enter the result on this line and go to Part II.

Medicare Tax withholding are reported

compensation, skip Part III and go to Part IV.

together on Form W-2, box 6.

Line 14

Part II—Additional

Line 22

Medicare Tax on

Enter the total of your railroad retirement

If line 22 is zero or less, enter zero.

(RRTA) compensation and tips. The amount

Self-Employment (SE)

of RRTA compensation for a railroad

Line 23

Income

employee is reported on Form W-2, box 14.

Enter the amount of Additional Medicare Tax

If you have more than one Form W-2, enter

If you (and your spouse if filing a joint return)

withheld, if any, which is reported on Form

the total of the RRTA compensation amounts

did not have self-employment income, skip

W-2, box 14. If you have more than one

from box 14 of all Forms W-2. If you are filing

Part II and go to Part III.

Form W-2, add the amounts in box 14 of all

a joint return, also include your spouse’s

your Forms W-2 and enter the total here. If

Line 8

RRTA compensation. An employee

you are filing a joint return, also include your

representative subject to RRTA taxes should

spouse’s Additional Medicare Tax withheld.

Form 1040 and 1040NR filers. Enter your

include the total compensation subject to

An employee representative subject to

self-employment income from Schedule SE,

Tier 1 Medicare tax as reported on line 2 of

RRTA taxes should include the total

Section A, line 4 or Section B, line 6.

Form CT-2 (include the total of the

Additional Medicare Tax paid as reported on

Combine amounts from these lines if you

compensation amounts from line 2 of all

line 3 of Form CT-2 (include the total

have entries on both Section A, line 4 and

Forms CT-2 filed for 2013).

Additional Medicare Tax paid from line 3 of

Section B, line 6, or if you have multiple

Line 17

all Forms CT-2 filed for 2013).

Schedules SE.

Multiply line 16 by 0.9% (.009). This is your

Line 24

Form 1040-SS and 1040-PR filers. Enter

Additional Medicare Tax on railroad

the self-employment income from Part V,

Include the amount from line 24 on the

retirement (RRTA) compensation. Enter the

line 6.

following line of your tax return.

result on this line and go to Part IV.

Line 13

If you file Form 1040, include this amount

Part IV—Total Additional

on line 62, combined with your federal

Multiply line 12 by 0.9% (.009). This is your

income tax withholding.

Medicare Tax

Additional Medicare Tax on self-employment

If you file Form 1040NR, include this

income. Enter the result on this line and go to

amount on line 61a, combined with your

Line 18

Part III.

federal income tax withholding.

Example. Kathleen and Liam are

Include the amount from line 18 on the

If you file Form 1040-SS, include this

married and file a joint return. Kathleen has

following line of your tax return.

amount on line 11 of Part I.

$130,000 in wages (included on line 4 of

Line 60 of Form 1040.

If you file Form 1040-PR, include this

Form 8959). Liam has $140,000 in

Line 59 of Form 1040NR.

amount on line 11 of Part I.

self-employment income (included on line 8

Line 5 in Part I of Form 1040-SS.

of Form 8959). The $130,000 of Kathleen’s

Attach your completed Form 8959 to Form

Line 5 in Part I of Form 1040-PR.

wages reduces Liam’s self-employment

1040, 1040NR, 1040-SS, or 1040-PR.

Part V—Withholding

income threshold to $120,000 ($250,000

threshold minus the $130,000 of wages, as

Reconciliation

figured on lines 9 through 11 of Form 8959).

Use Part V to figure the amount of Additional

Medicare Tax on wages and railroad

-3-

Instructions For Form 8959 - Additional Medicare Tax - 2013 Page 3

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