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2024

Instructions for Form 8959

Additional Medicare Tax

Section references are to the Internal Revenue Code considered for purposes of this tax. RRTA compensation
unless otherwise noted. should be separately compared to the threshold.
Your employer is responsible for withholding the 0.9%
Future Developments Additional Medicare Tax on your Medicare wages or RRTA
compensation paid in excess of $200,000 in a calendar
For the latest information about developments related to year. Your employer is required to begin withholding
Form 8959 and its instructions, such as legislation Additional Medicare Tax in the pay period in which your
enacted after they were published, go to IRS.gov/ wages or compensation for the year exceed $200,000 and
Form8959. continue to withhold it in each pay period for the
remainder of the calendar year.
Reminders
Threshold Amounts for Additional Medicare Tax
Missing or incorrect Form W-2. Your employer is
required to furnish Form W-2, Wage and Tax Statement, to Note. The threshold amounts below aren't indexed for
you no later than January 31, 2025. If you don't receive inflation.
your Form W-2 by early February, see Tax Topic 154 to
find out what to do. Tax topics are available at IRS.gov/
Filing Status Threshold Amount
TaxTopics. Even if you don't get a Form W-2, you must still
figure your Additional Medicare Tax. If you lose your Form Married filing jointly $250,000
W-2 or it is incorrect, ask your employer for a new one.
Married filing separately $125,000
Forms W-2 of U.S. territories. References to Form W-2 Single $200,000
on Form 8959 and in these instructions also apply to
Forms W-2AS, W-2CM, W-2GU, W-2VI, and 499R-2/ Head of household $200,000
W-2PR. However, for Form 499R-2/W-2PR, Medicare Qualifying surviving spouse $200,000
wages and tips are reported in box 22 and Medicare tax
withheld is reported in box 23.
More information. The IRS and the Treasury
General Instructions Department have issued final regulations (T.D. 9645) on
the Additional Medicare Tax. The final regulations are
Purpose of Form available at IRS.gov/irb/2013-51_IRB#TD-9645. For more
Use Form 8959 to figure the amount of Additional information on Additional Medicare Tax, go to IRS.gov/
Medicare Tax you owe and the amount of Additional ADMTfaqs.
Medicare Tax withheld by your employer, if any. You will
carry the amounts to one of the following returns. Who Must File
• Form 1040. You must file Form 8959 if one or more of the following
• Form 1040-SR. applies to you.
• Form 1040-NR. • Your Medicare wages and tips on any single Form W-2
• Form 1040-SS. (box 5) are greater than $200,000.
• Your RRTA compensation on any single Form W-2
Attach Form 8959 to your return. (box 14) is greater than $200,000.
If you are filing Form 8959, you must file one of the • Your total Medicare wages and tips plus your
self-employment income, if any (including the Medicare
! forms listed earlier. wages and tips and self-employment income of your
CAUTION
spouse, if married filing jointly), are greater than the
Additional Medicare Tax. A 0.9% Additional Medicare threshold amount for your filing status in the Threshold
Tax applies to your Medicare wages, Railroad Retirement Amounts for Additional Medicare Tax chart.
Tax Act (RRTA) compensation, and self-employment • Your total RRTA compensation and tips (Form W-2,
income above a threshold amount. The threshold amounts box 14) (including the RRTA compensation and tips of
are listed in the Threshold Amounts for Additional your spouse, if married filing jointly) is greater than the
Medicare Tax chart. threshold amount for your filing status in the Threshold
Medicare wages and self-employment income are Amounts for Additional Medicare Tax chart.
combined to determine if your income exceeds the
threshold. A self-employment loss shouldn't be
Instructions for Form 8959 (2024) Catalog Number 53784D
Nov 12, 2024 Department of the Treasury Internal Revenue Service www.irs.gov

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Your Medicare wages include your wages and tips from Example 1. Ann, a single filer, has $130,000 in
Form W-2, box 5; your tips from Form 4137, line 6; and self-employment income and $0 in wages. Ann isn't liable
your wages from Form 8919, line 6. for Additional Medicare Tax and doesn't need to file Form
Your self-employment income includes amounts from 8959 because her self-employment income is less than
Schedule SE (Form 1040), Part I, line 6. But negative the $200,000 threshold for single filers.
amounts shouldn't be considered for purposes of Form Example 2. Bob, a single filer, has $220,000 in
8959. self-employment income and $0 in wages. Bob is liable for
If your Medicare wages, RRTA compensation, or Additional Medicare Tax on $20,000 ($220,000 in
self-employment income is adjusted, you may need to self-employment income minus the threshold of
correct your liability, if any, for Additional Medicare Tax. $200,000). Bob must file Form 8959.
When correcting Additional Medicare Tax liability, attach a Example 3. Carl, a single filer, has $145,000 in
corrected Form 8959 to your original return or amended self-employment income and $130,000 in wages. Carl’s
return, as applicable. If you are correcting Medicare wages don't exceed $200,000. Therefore, Carl’s employer
wages or RRTA compensation, also attach Form W-2 or didn't withhold Additional Medicare Tax. However, the
Form W-2c, Corrected Wage and Tax Statement. $130,000 of wages reduces the self-employment income
threshold to $70,000 ($200,000 threshold minus the
Amounts Subject to Additional $130,000 of wages). Carl is liable for Additional Medicare
Medicare Tax Tax on $75,000 of self-employment income ($145,000 in
All wages that are subject to Medicare tax are subject to self-employment income minus the reduced threshold of
Additional Medicare Tax to the extent they exceed the $70,000). Carl must file Form 8959.
threshold amount for your filing status. For more Example 4. Don, who is married and files married
information on what wages are subject to Medicare tax, filing separately, has $150,000 in self-employment income
see the chart, Special Rules for Various Types of Services and $200,000 in wages. Don’s wages don't exceed
and Payments, in section 15 of Pub. 15 (Circular E), $200,000. Therefore, Don’s employer didn't withhold
Employer’s Tax Guide. Additional Medicare Tax. However, Don is liable for
Additional Medicare Tax on $75,000 of wages ($200,000
Your employer must withhold Additional Medicare Tax
in wages minus the $125,000 threshold for a married filing
on wages it pays to you in excess of $200,000 for the
separately return). In addition, the $200,000 of wages
calendar year, regardless of your filing status and
reduces the self-employment income threshold to $0
regardless of wages or compensation paid by another
($125,000 threshold minus the $200,000 of wages). Don
employer.
is also liable for Additional Medicare Tax on $150,000 of
All RRTA compensation that is subject to Medicare tax self-employment income ($150,000 in self-employment
is subject to Additional Medicare Tax to the extent it income minus the reduced threshold of $0). Don must file
exceeds the threshold amount for your filing status. A Form 8959.
railroad employer must withhold Additional Medicare Tax Example 5. Erin and Frank are married and file jointly.
on compensation it pays to you in excess of $200,000 for Erin has $150,000 in wages and Frank has $175,000 in
the calendar year, regardless of your filing status and wages. Neither Erin nor Frank has wages that exceed
regardless of wages or compensation paid by another $200,000. Therefore, their employers didn't withhold
employer. Additional Medicare Tax. However, their combined
You can't ask your employer to stop Additional $325,000 in wages exceeds the $250,000 threshold for
Medicare Tax withholding if it is required to withhold it. If joint filers. Erin and Frank are liable for Additional
you don't owe Additional Medicare Tax, you can claim a Medicare Tax on $75,000 of wages ($325,000 in wages
credit for any withheld Additional Medicare Tax against the minus the $250,000 threshold). Erin and Frank must file
total tax liability shown on your tax return by filing Form Form 8959.
8959. Example 6. George and Helen are married and file
jointly. George has $190,000 in wages and Helen has
If you have both wages and self-employment income,
$150,000 in compensation subject to RRTA taxes. Neither
the threshold amount for applying Additional Medicare Tax
George nor Helen has wages or compensation that
on the self-employment income is reduced (but not below
exceeds $200,000. Therefore, their employers didn't
zero) by the total amount of Medicare wages received.
withhold Additional Medicare Tax. George and Helen don't
There is no equivalent rule for RRTA compensation. See
combine their wages and RRTA compensation to
Examples, later.
determine whether they are in excess of the $250,000
There are no special rules for Additional Medicare Tax threshold for a joint return. George and Helen aren't liable
for nonresident aliens and U.S. citizens living abroad. for Additional Medicare Tax because George’s wages
Wages, RRTA compensation, and self-employment aren't in excess of the $250,000 threshold and Helen’s
income that are subject to Medicare tax will also be RRTA compensation isn't in excess of the $250,000
subject to Additional Medicare Tax if in excess of the threshold.
applicable threshold. Example 7. Ishmael and Judy are married and file
jointly. Ishmael has $160,000 in self-employment income
Examples
and Judy has $140,000 in compensation subject to RRTA
The following examples will assist you in understanding taxes. Judy's compensation didn't exceed $200,000.
and figuring your Additional Medicare Tax.

2 Instructions for Form 8959 (2024)

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Therefore, Judy's employer didn't withhold Additional
Medicare Tax. The $140,000 of RRTA compensation Specific Instructions
doesn't reduce the threshold at which Additional Medicare
Tax applies to self-employment income. Ishmael and Judy Name(s). Print or type your name (and your spouse's
aren't liable for Additional Medicare Tax because name if filing a joint return) exactly as it is entered on your
Ishmael's self-employment income isn't in excess of the return.
$250,000 threshold and Judy’s RRTA compensation isn't Social security number. The social security number on
in excess of the $250,000 threshold. this form should match the social security number on your
tax return. If you are married and filing a joint return, enter
Income Tax Withholding and the first social security number that appears on your
Estimated Tax Payments for 2025 return.

Depending upon your filing status, wages, RRTA Part I—Additional Medicare Tax on
compensation, and self-employment income, you may
owe more than the amount that was withheld by your Medicare Wages
employer. If you anticipate having a liability for Additional If you (and your spouse if filing a joint return) didn't have
Medicare Tax for 2025, you may request that your Medicare wages, skip Part I and go to Part II.
employer withhold an additional amount of income tax.
You make the request by filing a new Form W-4, Line 1
Employee's Withholding Certificate, with your employer. Enter your Medicare wages and tips from box 5 of your
The additional income tax withholding will be applied Form W-2. If you have more than one Form W-2, enter the
against the taxes shown on your tax return, including any total of the amounts from box 5 of all Forms W-2. If you are
Additional Medicare Tax liability. You can't request filing a joint return, also include your spouse’s wages and
additional withholding specifically for Additional Medicare tips.
Tax. For more information on tax withholding, see Pub.
505. Line 2
Enter unreported tips from line 6 of Form 4137, Social
To the extent Additional Medicare Tax isn't withheld by
Security and Medicare Tax on Unreported Tip Income. If
your employer, you must pay the tax. If you anticipate that
you are filing a joint return, also include the amount from
you will owe Additional Medicare Tax for 2025 but won't
line 6 of your spouse's Form 4137.
satisfy the liability through withholding, you may need to
make estimated tax payments. You should consider your Penalty for not reporting tips. If you didn't report tips to
estimated total tax liability in light of your wages, your employer as required, you may be charged a penalty
compensation, and self-employment income and the equal to 50% of the social security, Medicare, and
threshold amount for your filing status when determining Additional Medicare taxes due on those tips. You can
whether estimated tax payments are necessary. Any avoid this penalty if you can show that your failure to report
estimated tax payments you make will apply to any and all tips to your employer was due to reasonable cause and
taxes on your tax return, including any Additional not due to willful neglect. To do so, you can attach a
Medicare Tax. You can't designate any estimated tax statement to your return explaining why you didn't report
payments specifically for Additional Medicare Tax. them or submit a statement in response to a notice
regarding a proposed penalty assessment. For more
If you intend to file a joint return for 2025 and you information about tip reporting, see Pub. 531.
anticipate that the combined wages and self-employment
income of you and your spouse are going to be more than Line 3
$250,000, you may want to request additional withholding Enter wages from line 6 of Form 8919, Uncollected Social
on Form W-4 and/or make estimated tax payments. If you Security and Medicare Tax on Wages. If you are filing a
are in a community property state and plan to file as joint return, also include the amount from line 6 of your
married filing separately, see Pub. 555 for more spouse's Form 8919.
information on the treatment of withheld income taxes.
In general, you don't have to make estimated tax Line 7
payments if you expect that your 2025 return will show a Multiply line 6 by 0.9% (0.009). This is your Additional
tax refund or a tax balance due of less than $1,000. If you Medicare Tax on your wages. Enter the result on this line
expect to owe $1,000 or more in tax for 2025 after and go to Part II.
subtracting your withholding and refundable credits, see
Form 1040-ES (or Form 1040-ES (NR) if a nonresident Part II—Additional Medicare Tax on
alien) and Pub. 505 for a worksheet you can use to see if Self-Employment Income
you have to make estimated tax payments. For more If you (and your spouse if filing a joint return) didn't have
details, see Pub. 505. self-employment income, skip Part II and go to Part III.
Estimated tax penalty. You may be subject to a penalty
for failure to make estimated tax payments if you owe Line 8
Additional Medicare Tax and wait to pay the tax with your Enter your self-employment income from Schedule SE
tax return. See Form 2210 (or Form 2210-F for farmers (Form 1040), Part I, line 6. Combine amounts from this line
and fishers) and its separate instructions to determine if if you have multiple Schedules SE.
the penalty applies to you.

Instructions for Form 8959 (2024) 3

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Line 13 If you (and your spouse if filing a joint return) didn't have
Multiply line 12 by 0.9% (0.009). This is your Additional Medicare wages or RRTA compensation, leave Part V
Medicare Tax on self-employment income. Enter the result blank.
on this line and go to Part III.
Line 19
Example. Kathleen and Liam are married and file a Enter the amount of Medicare tax withheld, if any, reported
joint return. Kathleen has $130,000 in wages (included on on Form W-2, box 6. If you have more than one Form W-2,
line 4 of Form 8959). Liam has $140,000 in add the amounts in box 6 of all your Forms W-2 and enter
self-employment income (included on line 8 of Form the total here. If you are filing a joint return, include your
8959). The $130,000 of Kathleen’s wages reduces Liam’s spouse’s Medicare tax withheld.
self-employment income threshold to $120,000 ($250,000
threshold minus the $130,000 of wages, as figured on Also include any uncollected Medicare tax on tips from
lines 9 through 11 of Form 8959). Kathleen and Liam are Form W-2, box 12, code B, and any uncollected Medicare
liable for Additional Medicare Tax on $20,000 of Liam’s tax on the taxable cost of group-term life insurance over
self-employment income ($140,000 in self-employment $50,000 (for former employees) from Form W-2, box 12,
income minus the reduced threshold amount of $120,000, code N. If you have more than one Form W-2, add the
as figured on line 12 of Form 8959). Kathleen and Liam amounts in box 12, codes B and N, of all your Forms W-2
owe Additional Medicare Tax of $180.00 ($20,000 x 0.9% and enter the total here. If you are filing a joint return, also
(0.009), as figured on line 13 of Form 8959). Kathleen and include these amounts, if any, from your spouse's Form(s)
Liam must file Form 8959. W-2. However, don't include any amounts reported on
Form W-2, box 12, codes B and N, for uncollected RRTA
Part III—Additional Medicare Tax on Medicare tax.

Railroad Retirement Tax Act (RRTA) Note. Both Medicare tax and Additional Medicare Tax
Compensation withholding are reported together on Form W-2, box 6.
If you (and your spouse if filing a joint return) didn't have
Line 23
RRTA compensation, skip Part III and go to Part IV.
Enter the amount of Additional Medicare Tax withheld, if
Line 14 any, reported on Form W-2, box 14. If you have more than
Enter the total of your RRTA compensation and tips. The one Form W-2, add the amounts in box 14 of all your
amount of RRTA compensation for a railroad employee is Forms W-2 and enter the total here. If you are filing a joint
reported on Form W-2, box 14. If you have more than one return, include your spouse’s Additional Medicare Tax
Form W-2, enter the total of the RRTA compensation withheld. An employee representative subject to RRTA
amounts from box 14 of all Forms W-2. If you are filing a taxes should include the total Additional Medicare Tax
joint return, also include your spouse’s RRTA paid as reported on line 3 of Form CT-2 (include the total
compensation. An employee representative subject to Additional Medicare Tax paid from line 3 of all Forms CT-2
RRTA taxes should include the total compensation subject filed for 2024).
to Tier 1 Medicare tax as reported on line 2 of Form CT-2
Line 24
(include the total of the compensation amounts from line 2
of all Forms CT-2 filed for 2024). Include the amount from line 24 on the following line of
your tax return.
Line 17 • If you file Form 1040, 1040-SR, or 1040-NR, include
Multiply line 16 by 0.9% (0.009). This is your Additional this amount on line 25c combined with your federal
Medicare Tax on RRTA compensation. Enter the result on income tax withholding.
this line and go to Part IV. • If you file Form 1040-SS, enter this amount on line 11a
of Part I.
Part IV—Total Additional Medicare Tax
Attach your completed Form 8959 to Form 1040,
Line 18 1040-SR, 1040-NR, or 1040-SS.
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.

4 Instructions for Form 8959 (2024)

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