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2023
Instructions for Form 8959
Additional Medicare Tax
Department of the Treasury
Internal Revenue Service
Section references are to the Internal Revenue Code
unless otherwise noted.
Future Developments
For the latest information about developments related to
Form 8959 and its instructions, such as legislation
enacted after they were published, go to
IRS.gov/
Form8959.
What’s New
Form 1040-PR references removed from Form 8959.
Form 1040-PR is no longer available to file for tax years
beginning after 2022. If you are required to file Form
1040-SS and you prefer your forms in Spanish, you may
now file new Form 1040-SS (sp).
Reminders
Missing or incorrect Form W-2. Your employer is
required to furnish Form W-2, Wage and Tax Statement, to
you no later than January 31, 2024. If you don't receive
your Form W-2 by early February, see Tax Topic 154 to
find out what to do. Tax topics are available at IRS.gov/
TaxTopics. Even if you don't get a Form W-2, you must still
figure your Additional Medicare Tax. If you lose your Form
W-2 or it is incorrect, ask your employer for a new one.
Forms W-2 of U.S. territories. References to Form W-2
on Form 8959 and in these instructions also apply to
Forms W-2AS, W-2CM, W-2GU, W-2VI, and 499R-2/
W-2PR. However, for Form 499R-2/W-2PR, Medicare
wages and tips are reported in box 22 and Medicare tax
withheld is reported in box 23.
General Instructions
Purpose of Form
Use Form 8959 to figure the amount of Additional
Medicare Tax you owe and the amount of Additional
Medicare Tax withheld by your employer, if any. You will
carry the amounts to one of the following returns.
•
Form 1040.
•
Form 1040-SR.
•
Form 1040-NR.
•
Form 1040-SS.
Attach Form 8959 to your return.
If you are filing Form 8959, you must file one of the
forms listed earlier.
Additional Medicare Tax. A 0.9% Additional Medicare
Tax applies to your Medicare wages, Railroad Retirement
Tax Act (RRTA) compensation, and self-employment
income above a threshold amount. The threshold amounts
CAUTION
!
are listed in the
Threshold Amounts for Additional
Medicare Tax chart.
Threshold Amounts for Additional Medicare Tax
Note. The threshold amounts below aren't indexed for
inflation.
Filing Status Threshold Amount
Married filing jointly $250,000
Married filing separately $125,000
Single $200,000
Head of household $200,000
Qualifying surviving spouse $200,000
Medicare wages and self-employment income are
combined to determine if your income exceeds the
threshold. A self-employment loss shouldn't be
considered for purposes of this tax. RRTA compensation
should be separately compared to the threshold.
Your employer is responsible for withholding the 0.9%
Additional Medicare Tax on your Medicare wages or RRTA
compensation paid in excess of $200,000 in a calendar
year. Your employer is required to begin withholding
Additional Medicare Tax in the pay period in which your
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.
More information. The IRS and the Treasury
Department have issued final regulations (T.D. 9645) on
the Additional Medicare Tax. The final regulations are
available at IRS.gov/irb/2013-51_IRB#TD-9645. For more
information on Additional Medicare Tax, go to
IRS.gov/
ADMTfaqs.
Who Must File
You must file Form 8959 if one or more of the following
applies to you.
•
Your Medicare wages and tips on any single Form W-2
(box 5) are greater than $200,000.
•
Your RRTA compensation on any single Form W-2
(box 14) is greater than $200,000.
•
Your total Medicare wages and tips plus your
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 Threshold
Amounts for Additional Medicare Tax chart.
•
Your total RRTA compensation and tips (Form W-2,
box 14) (including the RRTA compensation and tips of
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your spouse, if married filing jointly) is greater than the
threshold amount for your filing status in the Threshold
Amounts for Additional Medicare Tax chart.
Your Medicare wages include your wages and tips from
Form W-2, box 5; your tips from Form 4137, line 6; and
your wages from Form 8919, line 6.
Your self-employment income includes amounts from
Schedule SE, Part I, line 6. But negative amounts
shouldn't be considered for purposes of Form 8959.
If your Medicare wages, RRTA compensation, or
self-employment income is adjusted, you may need to
correct your liability, if any, for Additional Medicare Tax.
When correcting Additional Medicare Tax liability, attach a
corrected Form 8959 to your original return or amended
return, as applicable. If you are correcting Medicare
wages or RRTA compensation, also attach Form W-2 or
Form W-2c, Corrected Wage and Tax Statement.
Amounts Subject to Additional
Medicare Tax
All wages that are subject to Medicare tax are subject to
Additional Medicare Tax to the extent they exceed the
threshold amount for your filing status. For more
information on what wages are subject to Medicare tax,
see the chart, Special Rules for Various Types of Services
and Payments, in section 15 of Pub. 15 (Circular E),
Employer’s Tax Guide.
Your employer must withhold Additional Medicare Tax
on wages it pays to you in excess of $200,000 for the
calendar year, regardless of your filing status and
regardless of wages or compensation paid by another
employer.
All RRTA compensation that is currently subject to
Medicare tax is subject to Additional Medicare Tax to the
extent it exceeds the threshold amount for your filing
status. A railroad employer must withhold Additional
Medicare Tax on compensation it pays to you in excess of
$200,000 for the calendar year, regardless of your filing
status and regardless of wages or compensation paid by
another employer.
You can't ask your employer to stop Additional
Medicare Tax withholding if it is required to withhold it. If
you don't owe Additional Medicare Tax, you can claim a
credit for any withheld Additional Medicare Tax against the
total tax liability shown on your tax return by filing Form
8959.
If you have both wages and self-employment income,
the threshold amount for applying Additional Medicare Tax
on the self-employment income is reduced (but not below
zero) by the total amount of Medicare wages received.
There is no equivalent rule for RRTA compensation. See
Examples, later.
There are no special rules for Additional Medicare Tax
for nonresident aliens and U.S. citizens living abroad.
Wages, RRTA compensation, and self-employment
income that are subject to Medicare tax will also be
subject to Additional Medicare Tax if in excess of the
applicable threshold.
Examples
The following examples will assist you in understanding
and figuring your Additional Medicare Tax.
Example 1. Ann, a single filer, has $130,000 in
self-employment income and $0 in wages. Ann isn't liable
for Additional Medicare Tax and doesn't need to file Form
8959 because her self-employment income is less than
the $200,000 threshold for single filers.
Example 2. Bob, a single filer, has $220,000 in
self-employment income and $0 in wages. Bob is liable for
Additional Medicare Tax on $20,000 ($220,000 in
self-employment income minus the threshold of
$200,000). Bob must file Form 8959.
Example 3. Carl, a single filer, has $145,000 in
self-employment income and $130,000 in wages. Carl’s
wages don't exceed $200,000. Therefore, Carl’s employer
didn't withhold Additional Medicare Tax. However, the
$130,000 of wages reduces the self-employment income
threshold to $70,000 ($200,000 threshold minus the
$130,000 of wages). Carl is liable for Additional Medicare
Tax on $75,000 of self-employment income ($145,000 in
self-employment income minus the reduced threshold of
$70,000). Carl must file Form 8959.
Example 4. Don, who is married and files married
filing separately, has $150,000 in self-employment income
and $200,000 in wages. Don’s wages don't exceed
$200,000. Therefore, Don’s employer didn't withhold
Additional Medicare Tax. However, Don is liable for
Additional Medicare Tax on $75,000 of wages ($200,000
in wages minus the $125,000 threshold for a married filing
separately return). In addition, the $200,000 of wages
reduces the self-employment income threshold to $0
($125,000 threshold minus the $200,000 of wages). Don
is also liable for Additional Medicare Tax on $150,000 of
self-employment income ($150,000 in self-employment
income minus the reduced threshold of $0). Don must file
Form 8959.
Example 5. Erin and Frank are married and file jointly.
Erin has $150,000 in wages and Frank has $175,000 in
wages. Neither Erin nor Frank has wages that exceed
$200,000. Therefore, their employers didn't withhold
Additional Medicare Tax. However, their combined
$325,000 in wages exceeds the $250,000 threshold for
joint filers. Erin and Frank are liable for Additional
Medicare Tax on $75,000 of wages ($325,000 in wages
minus the $250,000 threshold). Erin and Frank must file
Form 8959.
Example 6. George and Helen are married and file
jointly. George has $190,000 in wages and Helen has
$150,000 in compensation subject to RRTA taxes. Neither
George nor Helen has wages or compensation that
exceeds $200,000. Therefore, their employers didn't
withhold Additional Medicare Tax. George and Helen don't
combine their wages and RRTA compensation to
determine whether they are in excess of the $250,000
threshold for a joint return. George and Helen aren't liable
for Additional Medicare Tax because George’s wages
aren't in excess of the $250,000 threshold and Helen’s
RRTA compensation isn't in excess of the $250,000
threshold.
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Instructions for Form 8959 (2023)
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Example 7. Ishmael and Judy are married and file
jointly. Ishmael has $160,000 in self-employment income
and Judy has $140,000 in compensation subject to RRTA
taxes. Judy's compensation didn't exceed $200,000.
Therefore, Judy's employer didn't withhold Additional
Medicare Tax. The $140,000 of RRTA compensation
doesn't reduce the threshold at which Additional Medicare
Tax applies to self-employment income. Ishmael and Judy
aren't liable for Additional Medicare Tax because
Ishmael's self-employment income isn't in excess of the
$250,000 threshold and Judy’s RRTA compensation isn't
in excess of the $250,000 threshold.
Income Tax Withholding and
Estimated Tax Payments for 2024
Depending upon your filing status, wages, RRTA
compensation, and self-employment income, you may
owe more than the amount that was withheld by your
employer. If you anticipate having a liability for Additional
Medicare Tax for 2024, you may request that your
employer withhold an additional amount of income tax.
You make the request by filing a new Form W-4,
Employee's Withholding Certificate, with your employer.
The additional income tax withholding will be applied
against the taxes shown on your tax return, including any
Additional Medicare Tax liability. You can't request
additional withholding specifically for Additional Medicare
Tax. For more information on tax withholding, see Pub.
505.
To the extent Additional Medicare Tax isn't withheld by
your employer, you must pay the tax. If you anticipate that
you will owe Additional Medicare Tax for 2024 but won't
satisfy the liability through withholding, you may need to
make estimated tax payments. You should consider your
estimated total tax liability in light of your wages,
compensation, and self-employment income and the
threshold amount for your filing status when determining
whether estimated tax payments are necessary. Any
estimated tax payments you make will apply to any and all
taxes on your tax return, including any Additional
Medicare Tax. You can't designate any estimated tax
payments specifically for Additional Medicare Tax.
If you intend to file a joint return for 2024 and you
anticipate that the combined wages and self-employment
income of you and your spouse are going to be more than
$250,000, you may want to request additional withholding
on Form W-4 and/or make estimated payments. If you are
in a community property state and plan to file as married
filing separately, see Pub. 555 for more information on the
treatment of withheld income taxes.
In general, you don't have to make estimated tax
payments if you expect that your 2024 return will show a
tax refund or a tax balance due of less than $1,000. If you
expect to owe $1,000 or more in tax for 2024 after
subtracting your withholding and refundable credits, see
Form 1040-ES (or Form 1040-ES (NR) if a nonresident
alien) and Pub. 505 for a worksheet you can use to see if
you have to make estimated tax payments. For more
details, see Pub. 505.
Estimated tax penalty. You may be subject to a penalty
for failure to make estimated tax payments if you owe
Additional Medicare Tax and wait to pay the tax with your
tax return. See Form 2210 (or Form 2210-F for farmers
and fishermen) and its separate instructions to determine
if the penalty applies to you.
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) didn't have
Medicare wages, skip Part I and go to Part II.
Line 1
Enter 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 of all Forms W-2. 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.
Penalty for not reporting tips. If you didn't report tips to
your employer as required, you may be charged a penalty
equal to 50% of the social security, Medicare, and
Additional Medicare taxes due on those tips. You can
avoid this penalty if you can show that your failure to report
tips to your employer was due to reasonable cause and
not due to willful neglect. To do so, you can attach a
statement to your return explaining why you didn't report
them or submit a statement in response to a notice
regarding a proposed penalty assessment. For more
information about tip reporting, see Pub. 531.
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% (0.009). 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 Income
If you (and your spouse if filing a joint return) didn't have
self-employment income, skip Part II and go to Part III.
Instructions for Form 8959 (2023)
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Line 8
Enter your self-employment income from Schedule SE,
Part I, line 6. Combine amounts from this line if you have
multiple Schedules SE.
Line 13
Multiply line 12 by 0.9% (0.009). 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 for 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 0.9%
(0.009), as figured on line 13 of Form 8959). Kathleen and
Liam must file Form 8959.
Part III—Additional Medicare Tax on
Railroad Retirement Tax Act (RRTA)
Compensation
If you (and your spouse if filing a joint return) didn't have
RRTA compensation, skip Part III and go to Part IV.
Line 14
Enter the total of your 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 2023).
Line 17
Multiply line 16 by 0.9% (0.009). This is your Additional
Medicare Tax on 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 11 of Schedule 2 (Form 1040).
•
Line 5 of Part I of Form 1040-SS.
Part V—Withholding Reconciliation
Use Part V to figure the amount of Additional Medicare
Tax on wages and RRTA compensation withheld by your
employer.
If you (and your spouse if filing a joint return) didn't have
Medicare wages or RRTA compensation, leave Part V
blank.
Line 19
Enter the amount of Medicare tax withheld, if any, 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, include your
spouse’s Medicare tax withheld.
Also include any uncollected Medicare tax on tips from
Form W-2, box 12, code B, and any uncollected Medicare
tax on the taxable cost of group-term life insurance over
$50,000 (for former employees) from Form W-2, box 12,
code N. If you have more than one Form W-2, add the
amounts in box 12, codes B and N, of all your Forms W-2
and enter the total here. If you are filing a joint return, also
include these amounts, if any, from your spouse's Form(s)
W-2. However, don't include any amounts reported on
Form W-2, box 12, codes B and N, for uncollected RRTA
Medicare tax.
Note. Both Medicare tax and Additional Medicare Tax
withholding are reported together on Form W-2, box 6.
Line 23
Enter the amount of Additional Medicare Tax withheld, if
any, 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, 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 2023).
Line 24
Include the amount from line 24 on the following line of
your tax return.
•
If you file Form 1040, 1040-SR, or 1040-NR, include
this amount on line 25c combined with your federal
income tax withholding.
•
If you file Form 1040-SS, include this amount on line 12
of Part I.
Attach your completed Form 8959 to Form 1040,
1040-SR, 1040-NR, or 1040-SS.
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Instructions for Form 8959 (2023)
