Additional Medicare Tax, IRS Form 8959

The Additional Medicare Tax (AMT), reported on IRS Form 8959, is a 0.9% tax on high income exceeding set thresholds to fund Medicare Part B. It applies to wages, self-employment income, and some retirement benefits. You may need to file Form 8959 if your income surpasses specific limits.

What is the Additional Medicare Tax?

  • A 0.9% tax on wages and self-employment income exceeding set thresholds.
  • Applies in addition to the regular 1.45% Medicare tax.
  • Paid by employees, self-employed individuals, and certain railroad retirement beneficiaries.

Who Needs to File Form 8959?

  • You need to file Form 8959 if:
    • Your Medicare wages and tips on any single W-2 exceed $200,000 (Single, Head of Household, Qualifying Widow(er)).
    • Your RRTA compensation on any single W-2 exceeds $200,000.
    • The combined total of your Medicare wages, tips, and self-employment income (including your spouse's if filing jointly) exceeds the threshold for your filing status (refer to the IRS chart).

Key Points about Form 8959:

  • Purpose: Calculate and report Additional Medicare Tax owed and withheld.
  • Filing Deadline: Same as your federal income tax return.
  • Where to File: Attach Form 8959 to your Form 1040, 1040-SR, or 1040-NR.

Additional Notes:

  • Employers withhold Additional Medicare Tax if your wages exceed the threshold.
  • If you overpaid Additional Medicare Tax, you can claim a credit on your tax return.
  • This information is for tax year 2023 and may change in future years.