Instructions For Form 8959 - Additional Medicare Tax

Part I—Additional

Part IV—Total Additional

1. The amount on Schedule SE,

Section A, line 4, if it is less than $400.

Medicare Tax on Medicare

Medicare Tax

2. The amount on Schedule SE,

Wages

Section B, line 6, if it is less than $400 and

Line 18

the amount on line 5b is -0- or blank.

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

Include the amount from line 18 on the

However, if line 5b is $100 or more, include

didn't have Medicare wages, skip Part I and

following line of your tax return.

that amount on line 8.

go to Part II.

Line 62 of Form 1040.

3. The amount on Form 1040-SS or

Line 1

Line 60 of Form 1040NR.

Form 1040-PR, Part V, line 6, if it is less than

Line 5 in Part I of Form 1040-SS.

Enter your Medicare wages and tips from

$400 and the amount on line 5b is -0- or

Line 5 in Part I of Form 1040-PR.

box 5 of your Form W-2. If you have more

blank. However, if line 5b is $100 or more,

than one Form W-2, enter the total of the

include that amount on line 8.

Part V—Withholding

amounts from box 5. If you are filing a joint

Reconciliation

Line 13

return, also include your spouse’s wages and

tips.

Multiply line 12 by 0.9% (0.009). This is your

Use Part V to figure the amount of Additional

Line 2

Additional Medicare Tax on self-employment

Medicare Tax on wages and railroad

income. Enter the result on this line and go to

retirement (RRTA) compensation withheld

Enter unreported tips from line 6 of Form

Part III.

by your employer.

4137, Social Security and Medicare Tax on

Example. Kathleen and Liam are

Unreported Tip Income. If you are filing a

If you (and your spouse if filing a joint

married and file a joint return. Kathleen has

joint return, also include the amount from

return) didn't have Medicare wages or

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

line 6 of your spouse's Form 4137.

railroad retirement (RRTA) compensation,

Form 8959). Liam has $140,000 in

leave Part V blank.

Penalty for not reporting tips. If you didn't

self-employment income (included on line 8

report tips to your employer as required, you

Line 19

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

may be charged a penalty equal to 50% of

wages reduces Liam’s self-employment

Enter the amount of Medicare tax withheld, if

the social security, Medicare, and Additional

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

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

Medicare taxes due on those tips. You can

threshold minus the $130,000 of wages, as

have more than one Form W-2, add the

avoid this penalty if you can show that your

figured on lines 9 through 11 of Form 8959).

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

failure to report tips to your employer was

Kathleen and Liam are liable for Additional

enter the total here. If you are filing a joint

due to reasonable cause and not due to

Medicare Tax on $20,000 of Liam’s

return, include your spouse’s Medicare tax

willful neglect. To do so, you can attach a

self-employment income ($140,000 in

withheld.

statement to your return explaining why you

self-employment income minus the reduced

didn't report them or submit a statement in

threshold amount of $120,000, as figured on

Also include any Uncollected Medicare

response to a notice regarding a proposed

line 12 of Form 8959). Kathleen and Liam

tax on tips from Form W-2, box 12, code B,

penalty assessment. For more information

owe Additional Medicare Tax of $180.00

and any Uncollected Medicare tax on the

about tip reporting, see Pub. 531.

($20,000 x 0.009, as figured on line 13 of

taxable cost of group-term life insurance over

Form 8959). Kathleen and Liam must file

Line 3

$50,000 (for former employees) from Form

Form 8959.

W-2, box 12, code N. If you have more than

Enter wages from line 6 of Form 8919,

one Form W-2, add the amounts in box 12,

Uncollected Social Security and Medicare

Part III—Additional

codes B and N, of all your Forms W-2 and

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

Medicare Tax on Railroad

enter the total here. If you are filing a joint

also include the amount from line 6 of your

return, also include these amounts, if any,

Retirement Tax Act (RRTA)

spouse's Form 8919.

from your spouse's Form(s) W-2. However,

Compensation

Line 7

don't include any amounts reported on Form

W-2, box 12, codes B and N for uncollected

Multiply line 6 by 0.9% (0.009). This is your

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

RRTA Medicare tax.

Additional Medicare Tax on your wages.

didn't have railroad retirement (RRTA)

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

compensation, skip Part III and go to Part IV.

Note. Both Medicare tax and Additional

Line 14

Medicare Tax withholding are reported

Part II—Additional

together on Form W-2, box 6.

Enter the total of your railroad retirement

Medicare Tax on

Line 23

(RRTA) compensation and tips. The amount

Self-Employment Income

of railroad retirement (RRTA) compensation

Enter the amount of Additional Medicare Tax

for a railroad employee is reported on Form

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

withheld, if any, reported on Form W-2,

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

didn't have self-employment income, skip

box 14. If you have more than one Form

Form W-2, enter the total of the railroad

Part II and go to Part III.

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

retirement (RRTA) compensation amounts

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

Line 8

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

are filing a joint return, include your spouse’s

a joint return, also include your spouse’s

Form 1040 and 1040NR filers. Enter your

Additional Medicare Tax withheld. An

railroad retirement (RRTA) compensation.

self-employment income from Schedule SE,

employee representative subject to RRTA

An employee representative subject to

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

taxes should include the total Additional

RRTA taxes should include the total

Combine amounts from these lines if you

Medicare Tax paid as reported on line 3 of

compensation subject to Tier 1 Medicare tax

have entries on both Section A, line 4 and

Form CT-2 (include the total Additional

as reported on line 2 of Form CT-2 (include

Section B, line 6, or if you have multiple

Medicare Tax paid from line 3 of all Forms

the total of the compensation amounts from

Schedules SE.

CT-2 filed for 2017).

line 2 of all Forms CT-2 filed for 2017).

Line 24

Form 1040-SS and 1040-PR filers. Enter

Line 17

the self-employment income from Part V,

Include the amount from line 24 on the

Multiply line 16 by 0.9% (0.009). This is your

line 6.

following line of your tax return.

Additional Medicare Tax on railroad

Self-employment income less than $400.

If you file Form 1040, include this amount

retirement (RRTA) compensation. Enter the

on line 64, combined with your federal

Do not include any of the following amounts

result on this line and go to Part IV.

income tax withholding.

on line 8.

Instructions for Form 8959 (2017)

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Instructions For Form 8959 - Additional Medicare Tax - 2017 Page 3

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