Instructions For Form 8959 - 2016 Page 3
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4the social security number on your tax return.
the total of the compensation amounts from
Form 1040-SS and 1040-PR filers. Enter
If you are married and filing a joint return,
line 2 of all Forms CT-2 filed for 2016).
the self-employment income from Part V,
enter the first social security number that
line 6.
Line 17
appears on your return.
Self-employment income less than $400.
Multiply line 16 by 0.9% (.009). This is your
Part I—Additional
Do not include any of the following amounts
Additional Medicare Tax on railroad
on line 8.
retirement (RRTA) compensation. Enter the
Medicare Tax on Medicare
result on this line and go to Part IV.
1. The amount on Schedule SE,
Wages
Section A, line 4, if it is less than $400.
Part IV—Total Additional
If you (and your spouse if filing a joint return)
2. The amount on Schedule SE,
Medicare Tax
didn't have Medicare wages, skip Part I and
Section B, line 6, if it is less than $400 and
go to Part II.
the amount on line 5b is -0- or blank.
Line 18
However, if line 5b is $100 or more, include
Line 1
that amount on line 8.
Include the amount from line 18 on the
Enter your Medicare wages and tips from
3. The amount on Form 1040-SS or
following line of your tax return.
box 5 of your Form W-2. If you have more
Form 1040-PR, Part V, line 6, if it is less than
Line 62 of Form 1040.
than one Form W-2, enter the total of the
$400 and the amount on line 5b is -0- or
Line 60 of Form 1040NR.
amounts from box 5. If you are filing a joint
blank. However, if line 5b is $100 or more,
Line 5 in Part I of Form 1040-SS.
return, also include your spouse’s wages and
include that amount on line 8.
Line 5 in Part I of Form 1040-PR.
tips.
Line 13
Part V—Withholding
Line 2
Multiply line 12 by 0.9% (.009). This is your
Reconciliation
Enter unreported tips from line 6 of Form
Additional Medicare Tax on self-employment
4137, Social Security and Medicare Tax on
Use Part V to figure the amount of Additional
income. Enter the result on this line and go to
Unreported Tip Income. If you are filing a
Medicare Tax on wages and railroad
Part III.
joint return, also include the amount from
retirement (RRTA) compensation withheld
line 6 of your spouse's Form 4137.
Example. Kathleen and Liam are
by your employer.
married and file a joint return. Kathleen has
Penalty for not reporting tips. If you didn't
$130,000 in wages (included on line 4 of
If you (and your spouse if filing a joint
report tips to your employer as required, you
Form 8959). Liam has $140,000 in
return) didn't have Medicare wages or
may be charged a penalty equal to 50% of
self-employment income (included on line 8
railroad retirement (RRTA) compensation,
the social security, Medicare, and Additional
of Form 8959). The $130,000 of Kathleen’s
leave Part V blank.
Medicare taxes due on those tips. You can
wages reduces Liam’s self-employment
avoid this penalty if you can show that your
Line 19
income threshold to $120,000 ($250,000
failure to report tips to your employer was
threshold minus the $130,000 of wages, as
Enter the amount of Medicare tax withheld, if
due to reasonable cause and not due to
figured on lines 9 through 11 of Form 8959).
any, reported on Form W-2, box 6. If you
willful neglect. To do so, you can attach a
Kathleen and Liam are liable for Additional
have more than one Form W-2, add the
statement to your return explaining why you
Medicare Tax on $20,000 of Liam’s
amounts in box 6 of all your Forms W-2 and
didn't report them or submit a statement in
self-employment income ($140,000 in
enter the total here. If you are filing a joint
response to a notice regarding a proposed
self-employment income minus the reduced
return, include your spouse’s Medicare tax
penalty assessment. For more information
threshold amount of $120,000, as figured on
withheld.
about tip reporting, see Pub. 531.
line 12 of Form 8959). Kathleen and Liam
Line 3
owe Additional Medicare Tax of $180.00
Also include any Uncollected Medicare
($20,000 x .009, as figured on line 13 of
tax on tips from Form W-2, box 12, code B,
Enter wages from line 6 of Form 8919,
Form 8959). Kathleen and Liam must file
and any Uncollected Medicare tax on the
Uncollected Social Security and Medicare
Form 8959.
taxable cost of group-term life insurance over
Tax on Wages. If you are filing a joint return,
$50,000 (for former employees) from Form
also include the amount from line 6 of your
Part III—Additional
W-2, box 12, code N. If you have more than
spouse's Form 8919.
Medicare Tax on Railroad
one Form W-2, add the amounts in box 12,
Line 7
codes B and N, of all your Forms W-2 and
Retirement Tax Act (RRTA)
enter the total here. If you are filing a joint
Multiply line 6 by 0.9% (.009). This is your
Compensation
return, also include these amounts, if any,
Additional Medicare Tax on your wages.
from your spouse's Form(s) W-2. However,
Enter the result on this line and go to Part II.
If you (and your spouse if filing a joint return)
don't include any amounts reported on Form
didn't have railroad retirement (RRTA)
Part II—Additional
W-2, box 12, codes B and N for uncollected
compensation, skip Part III and go to Part IV.
RRTA Medicare tax.
Medicare Tax on
Line 14
Self-Employment Income
Note. Both Medicare tax and Additional
Enter the total of your railroad retirement
Medicare Tax withholding are reported
(RRTA) compensation and tips. The amount
If you (and your spouse if filing a joint return)
together on Form W-2, box 6.
of railroad retirement (RRTA) compensation
didn't have self-employment income, skip
Line 23
for a railroad employee is reported on Form
Part II and go to Part III.
W-2, box 14. If you have more than one
Enter the amount of Additional Medicare Tax
Line 8
Form W-2, enter the total of the railroad
withheld, if any, reported on Form W-2,
retirement (RRTA) compensation amounts
Form 1040 and 1040NR filers. Enter your
box 14. If you have more than one Form
from box 14 of all Forms W-2. If you are filing
self-employment income from Schedule SE,
W-2, add the amounts in box 14 of all your
a joint return, also include your spouse’s
Section A, line 4 or Section B, line 6.
Forms W-2 and enter the total here. If you
railroad retirement (RRTA) compensation.
are filing a joint return, include your spouse’s
Combine amounts from these lines if you
An employee representative subject to
have entries on both Section A, line 4 and
Additional Medicare Tax withheld. An
RRTA taxes should include the total
Section B, line 6, or if you have multiple
employee representative subject to RRTA
compensation subject to Tier 1 Medicare tax
taxes should include the total Additional
Schedules SE.
as reported on line 2 of Form CT-2 (include
Medicare Tax paid as reported on line 3 of
Form CT-2 (include the total Additional
Instructions for Form 8959 (2016)
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