Specific Instructions

Name(s).   Print or type your name (and your spouse's name if filing a joint return) exactly as it is entered on your return.

Social security number.   The social security number on this form should match the social security number on your tax return. If you are married and filing a joint return, enter the first social security number that appears on your return.

Part I—Additional Medicare Tax on Medicare Wages

If you (and your spouse if filing a joint return) did not have Medicare wages, skip Part I and go to Part II.

Line 1

Enter the total of your Medicare wages and tips from box 5 of your Form W-2. If you have more than one Form W-2, enter the total of the amounts from box 5. If you are filing a joint return, also include your spouse’s wages and tips.

Line 2

Enter unreported tips from line 6 of Form 4137, Social Security and Medicare Tax on Unreported Tip Income. If you are filing a joint return, also include the amount from line 6 of your spouse's Form 4137.

Line 3

Enter wages from line 6 of Form 8919, Uncollected Social Security and Medicare Tax on Wages. If you are filing a joint return, also include the amount from line 6 of your spouse's Form 8919.

Line 7

Multiply line 6 by 0.9% (.009). This is your Additional Medicare Tax on your wages. Enter the result on this line and go to Part II.

Part II—Additional Medicare Tax on Self-Employment (SE) Income

If you (and your spouse if filing a joint return) did not have self-employment income, skip Part II and go to Part III.

Line 8

Form 1040 and 1040NR filers.   Enter your self-employment income from Schedule SE, Section A, line 4 or Section B, line 6. Combine amounts from these lines if you have entries on both Section A, line 4 and Section B, line 6, or if you have multiple Schedules SE.

Form 1040-SS and 1040-PR filers.   Enter the self-employment income from Part V, line 6.

Line 13

Multiply line 12 by 0.9% (.009). This is your Additional Medicare Tax on self-employment income. Enter the result on this line and go to Part III.

Example.

Kathleen and Liam are married and file a joint return. Kathleen has $130,000 in wages (included on line 4 of Form 8959). Liam has $140,000 in self-employment income (included on line 8 of Form 8959). The $130,000 of Kathleen’s wages reduces Liam’s self-employment income threshold to $120,000 ($250,000 threshold minus the $130,000 of wages, as figured on lines 9 through 11 of Form 8959). Kathleen and Liam are liable to pay Additional Medicare Tax on $20,000 of Liam’s self-employment income ($140,000 in self-employment income minus the reduced threshold amount of $120,000, as figured on line 12 of Form 8959). Kathleen and Liam owe Additional Medicare Tax of $180.00 ($20,000 x .009, as figured on line 13 of Form 8959).

Part III—Additional Medicare Tax on Railroad Retirement Tax Act (RRTA) Compensation

If you (and your spouse if filing a joint return) did not have railroad retirement (RRTA) compensation, skip Part III and go to Part IV.

Line 14

Enter the total of your railroad retirement (RRTA) compensation and tips. The amount of RRTA compensation for a railroad employee is reported on Form W-2, box 14. If you have more than one Form W-2, enter the total of the RRTA compensation amounts from box 14 of all Forms W-2. If you are filing a joint return, also include your spouse’s RRTA compensation. An employee representative subject to RRTA taxes should include the total compensation subject to Tier 1 Medicare tax as reported on line 2 of Form CT-2 (include the total of the compensation amounts from line 2 of all Forms CT-2 filed for 2013).

Line 17

Multiply line 16 by 0.9% (.009). This is your Additional Medicare Tax on railroad retirement (RRTA) compensation. Enter the result on this line and go to Part IV.

Part IV—Total Additional Medicare Tax

Line 18

Include the amount from line 18 on the following line of your tax return.

  • Line 60 of Form 1040.

  • Line 59 of Form 1040NR.

  • Line 5 in Part I of Form 1040-SS.

  • Line 5 in Part I of Form 1040-PR.

Part V—Withholding Reconciliation

Use Part V to figure the amount of Additional Medicare Tax on wages and railroad retirement (RRTA) compensation withheld by your employer.

If you (and your spouse if filing a joint return) did not have Medicare wages or railroad retirement (RRTA) compensation, leave Part V blank.

Line 19

Enter the amount of Medicare tax withheld, if any, which is reported on Form W-2, box 6. If you have more than one Form W-2, add the amounts in box 6 of all your Forms W-2 and enter the total here. If you are filing a joint return, also include your spouse’s Medicare tax withheld.

Note.

Both Medicare tax and Additional Medicare Tax withholding are reported together on Form W-2, box 6.

Line 22

If line 22 is zero or less, enter zero.

Line 23

Enter the amount of Additional Medicare Tax withheld, if any, which is reported on Form W-2, box 14. If you have more than one Form W-2, add the amounts in box 14 of all your Forms W-2 and enter the total here. If you are filing a joint return, also include your spouse’s Additional Medicare Tax withheld. An employee representative subject to RRTA taxes should include the total Additional Medicare Tax paid as reported on line 3 of Form CT-2 (include the total Additional Medicare Tax paid from line 3 of all Forms CT-2 filed for 2013).

Line 24

Include the amount from line 24 on the following line of your tax return.

  • If you file Form 1040, include this amount on line 62, combined with your federal income tax withholding.

  • If you file Form 1040NR, include this amount on line 61a, combined with your federal income tax withholding.

  • If you file Form 1040-SS, include this amount on line 11 of Part I.

  • If you file Form 1040-PR, include this amount on line 11 of Part I.

 
 
Attach your completed Form 8959 to Form 1040, 1040NR, 1040-SS, or 1040-PR.


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