Form 8959: Additional Medicare Tax

Did you know that Form 8959 combines Medicare wages and self-employment income thresholds?

First, the Medicare Tax was introduced in 1965 and then came along Additional Medicare in 2013. The 0.9% Additional Medicare Tax applies to wages in excess of $200,000 and self-employment income exceeding certain threshold amounts. It’s calculated on Form 8959 to determining how much additional Medicare tax must be withheld by your employer, if any at all. If filing jointly, you’ll need to add Medicare wages, tips, and self-employment income of your spouse as well. The income thresholds on Form 8959 combine both Medicare wages and self-employment.

When should you file a Form 8959?

You should file form 8959 if one or more conditions are met as follows:

  • Medicare wages and tips are greater than $200,000
  • Retirement income (RRTA) compensation is greater than $200,000
  • Medicare wages, tips, and self-employment income are greater than threshold amount for your filing status (see table below).
Please note, ezTaxReturn doesn’t support tax filings with RRTA compensation.

Threshold Amounts for Additional Medicare Tax

Filing StatusThreshold Amount
Head of household$200,000
Married filing separately$125,000
Married filing jointly$250,000
Qualifying surviving spouse$200,000

If Additional Medicare Tax should not be withheld, you can file Form 8959 to claim a credit on your total tax liability.

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