Form 8959 is used to calculate the amount of Additional Medicare Tax owed and the amount of Additional Medicare Tax withheld by a taxpayer’s employer, if any. Form 8959 must be filed if one or more of the following applies:
- Medicare wages and tips on any single Form W-2 (box 5) are greater than $200,000.
- Railroad retirement (RRTA) compensation on any single Form W-2 (box 14) is greater than $200,000.
- Total Medicare wages and tips plus your self-employment income (including the Medicare wages and tips and self-employment income of your spouse, if married filing jointly) are greater than the threshold amount for your filing status in the chart below.
- Total Medicare wages and tips plus self-employment income, if any (including the Medicare wages and tips and self-employment income of your spouse, if married filing jointly), are greater than the threshold amount for your filing status in the chart below.
- Total RRTA compensation and tips (Form W-2, box 14) (including the RRTA compensation and tips of your spouse, if married filing jointly) is greater than the threshold amount for your filing status in the chart below.
Medicare wages include wages and tips from Form W-2, box 5; tips from Form 4137, line 6; and wages from Form 8919, line 6.
Self-employment income includes amounts from Schedule SE, Part I, line 6. But negative amounts shouldn't be considered for purposes of Form 8959.
Additional Medicare Tax. A 0.9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above a threshold amount. The threshold amounts are listed below.
Medicare wages and self-employment income are combined to determine if a taxpayer’s income exceeds the threshold. A self-employment loss should not be considered for purposes of this tax. Railroad retirement (RRTA) compensation should be separately compared to the threshold.
The taxpayer’s employer is responsible for withholding the 0.9% Additional Medicare Tax on Medicare wages or railroad retirement (RRTA) compensation paid in excess of $200,000 in a calendar year. The employer is required to begin withholding Additional Medicare Tax in the pay period in which the taxpayer’s wages or compensation for the year exceed $200,000 and continue to withhold it in each pay period for the remainder of the calendar year.
Threshold Amounts for Additional Medicare Tax - The threshold amounts below are not indexed for inflation.
|Filing Status||Threshold Amount|
|Married filing jointly||$250,000|
|Married filing separately||$125,000|
|Head of household||$200,000|
|Qualifying widow(er) with dependent child||$200,000|
Accessing Form 8959 in TaxSlayer ProWeb: Additional Medicare Tax is automatically calculated by the program. Form 8959 is generated automatically and can be viewed from the Summary page of the of the tax return by selecting Preview Return > Print your 2021 Tax Return.
IRS Instructions for Form 8959 - Additional Medicare Tax