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Department of the Treasury
Internal Revenue Service
2023

Instructions for Form 8959

Additional Medicare Tax

Section references are to the Internal Revenue Code are listed in the Threshold Amounts for Additional
unless otherwise noted. Medicare Tax chart.

Future Developments Threshold Amounts for Additional Medicare Tax

For the latest information about developments related to Note. The threshold amounts below aren't indexed for
Form 8959 and its instructions, such as legislation inflation.
enacted after they were published, go to IRS.gov/
Form8959.
Filing Status Threshold Amount
What’s New
Married filing jointly $250,000
Form 1040-PR references removed from Form 8959.
Form 1040-PR is no longer available to file for tax years Married filing separately $125,000
beginning after 2022. If you are required to file Form Single $200,000
1040-SS and you prefer your forms in Spanish, you may
now file new Form 1040-SS (sp). Head of household $200,000
Qualifying surviving spouse $200,000
Reminders
Missing or incorrect Form W-2. Your employer is
Medicare wages and self-employment income are
required to furnish Form W-2, Wage and Tax Statement, to
combined to determine if your income exceeds the
you no later than January 31, 2024. If you don't receive
threshold. A self-employment loss shouldn't be
your Form W-2 by early February, see Tax Topic 154 to
considered for purposes of this tax. RRTA compensation
find out what to do. Tax topics are available at IRS.gov/
should be separately compared to the threshold.
TaxTopics. Even if you don't get a Form W-2, you must still
figure your Additional Medicare Tax. If you lose your Form Your employer is responsible for withholding the 0.9%
W-2 or it is incorrect, ask your employer for a new one. Additional Medicare Tax on your Medicare wages or RRTA
compensation paid in excess of $200,000 in a calendar
Forms W-2 of U.S. territories. References to Form W-2 year. Your employer is required to begin withholding
on Form 8959 and in these instructions also apply to Additional Medicare Tax in the pay period in which your
Forms W-2AS, W-2CM, W-2GU, W-2VI, and 499R-2/ wages or compensation for the year exceed $200,000 and
W-2PR. However, for Form 499R-2/W-2PR, Medicare continue to withhold it in each pay period for the
wages and tips are reported in box 22 and Medicare tax remainder of the calendar year.
withheld is reported in box 23.
More information. The IRS and the Treasury
Department have issued final regulations (T.D. 9645) on
General Instructions the Additional Medicare Tax. The final regulations are
available at IRS.gov/irb/2013-51_IRB#TD-9645. For more
Purpose of Form
information on Additional Medicare Tax, go to IRS.gov/
Use Form 8959 to figure the amount of Additional ADMTfaqs.
Medicare Tax you owe and the amount of Additional
Medicare Tax withheld by your employer, if any. You will Who Must File
carry the amounts to one of the following returns. You must file Form 8959 if one or more of the following
• Form 1040. applies to you.
• Form 1040-SR. • Your Medicare wages and tips on any single Form W-2
• Form 1040-NR. (box 5) are greater than $200,000.
• Form 1040-SS. • Your RRTA compensation on any single Form W-2
(box 14) is greater than $200,000.
Attach Form 8959 to your return. • Your total Medicare wages and tips plus your
If you are filing Form 8959, you must file one of the self-employment income, if any (including the Medicare
wages and tips and self-employment income of your
! forms listed earlier.
CAUTION spouse, if married filing jointly), are greater than the
threshold amount for your filing status in the Threshold
Additional Medicare Tax. A 0.9% Additional Medicare Amounts for Additional Medicare Tax chart.
Tax applies to your Medicare wages, Railroad Retirement Your total RRTA compensation and tips (Form W-2,
•
Tax Act (RRTA) compensation, and self-employment box 14) (including the RRTA compensation and tips of
income above a threshold amount. The threshold amounts

Aug 9, 2023 Cat. No. 53784D

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

-2- Instructions for Form 8959 (2023)

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Example 7. Ishmael and Judy are married and file Additional Medicare Tax and wait to pay the tax with your
jointly. Ishmael has $160,000 in self-employment income tax return. See Form 2210 (or Form 2210-F for farmers
and Judy has $140,000 in compensation subject to RRTA and fishermen) and its separate instructions to determine
taxes. Judy's compensation didn't exceed $200,000. if the penalty applies to you.
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 Specific Instructions
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
in excess of the $250,000 threshold. Social security number. The social security number on
this form should match the social security number on your
Income Tax Withholding and tax return. If you are married and filing a joint return, enter
the first social security number that appears on your
Estimated Tax Payments for 2024 return.
Depending upon your filing status, wages, RRTA
compensation, and self-employment income, you may Part I—Additional Medicare Tax on
owe more than the amount that was withheld by your
Medicare Wages
employer. If you anticipate having a liability for Additional
Medicare Tax for 2024, you may request that your If you (and your spouse if filing a joint return) didn't have
employer withhold an additional amount of income tax. Medicare wages, skip Part I and go to Part II.
You make the request by filing a new Form W-4,
Line 1
Employee's Withholding Certificate, with your employer.
The additional income tax withholding will be applied Enter your Medicare wages and tips from box 5 of your
against the taxes shown on your tax return, including any Form W-2. If you have more than one Form W-2, enter the
Additional Medicare Tax liability. You can't request total of the amounts from box 5 of all Forms W-2. If you are
additional withholding specifically for Additional Medicare filing a joint return, also include your spouse’s wages and
Tax. For more information on tax withholding, see Pub. tips.
505.
Line 2
To the extent Additional Medicare Tax isn't withheld by Enter unreported tips from line 6 of Form 4137, Social
your employer, you must pay the tax. If you anticipate that Security and Medicare Tax on Unreported Tip Income. If
you will owe Additional Medicare Tax for 2024 but won't you are filing a joint return, also include the amount from
satisfy the liability through withholding, you may need to line 6 of your spouse's Form 4137.
make estimated tax payments. You should consider your
estimated total tax liability in light of your wages, Penalty for not reporting tips. If you didn't report tips to
compensation, and self-employment income and the your employer as required, you may be charged a penalty
threshold amount for your filing status when determining equal to 50% of the social security, Medicare, and
whether estimated tax payments are necessary. Any Additional Medicare taxes due on those tips. You can
estimated tax payments you make will apply to any and all avoid this penalty if you can show that your failure to report
taxes on your tax return, including any Additional tips to your employer was due to reasonable cause and
Medicare Tax. You can't designate any estimated tax not due to willful neglect. To do so, you can attach a
payments specifically for Additional Medicare Tax. statement to your return explaining why you didn't report
them or submit a statement in response to a notice
If you intend to file a joint return for 2024 and you regarding a proposed penalty assessment. For more
anticipate that the combined wages and self-employment information about tip reporting, see Pub. 531.
income of you and your spouse are going to be more than
$250,000, you may want to request additional withholding Line 3
on Form W-4 and/or make estimated payments. If you are Enter wages from line 6 of Form 8919, Uncollected Social
in a community property state and plan to file as married Security and Medicare Tax on Wages. If you are filing a
filing separately, see Pub. 555 for more information on the joint return, also include the amount from line 6 of your
treatment of withheld income taxes. spouse's Form 8919.

In general, you don't have to make estimated tax Line 7
payments if you expect that your 2024 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 2024 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
you have to make estimated tax payments. For more Self-Employment Income
details, see Pub. 505. If you (and your spouse if filing a joint return) didn't have
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

Instructions for Form 8959 (2023) -3-

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Line 8 • Line 5 of Part I of Form 1040-SS.
Enter your self-employment income from Schedule SE,
Part V—Withholding Reconciliation
Part I, line 6. Combine amounts from this line if you have
multiple Schedules SE. Use Part V to figure the amount of Additional Medicare
Tax on wages and RRTA compensation withheld by your
Line 13 employer.
Multiply line 12 by 0.9% (0.009). This is your Additional If you (and your spouse if filing a joint return) didn't have
Medicare Tax on self-employment income. Enter the result Medicare wages or RRTA compensation, leave Part V
on this line and go to Part III. blank.
Example. Kathleen and Liam are married and file a
joint return. Kathleen has $130,000 in wages (included on Line 19
line 4 of Form 8959). Liam has $140,000 in Enter the amount of Medicare tax withheld, if any, reported
self-employment income (included on line 8 of Form on Form W-2, box 6. If you have more than one Form W-2,
8959). The $130,000 of Kathleen’s wages reduces Liam’s add the amounts in box 6 of all your Forms W-2 and enter
self-employment income threshold to $120,000 ($250,000 the total here. If you are filing a joint return, include your
threshold minus the $130,000 of wages, as figured on spouse’s Medicare tax withheld.
lines 9 through 11 of Form 8959). Kathleen and Liam are Also include any uncollected Medicare tax on tips from
liable for Additional Medicare Tax on $20,000 of Liam’s Form W-2, box 12, code B, and any uncollected Medicare
self-employment income ($140,000 in self-employment tax on the taxable cost of group-term life insurance over
income minus the reduced threshold amount of $120,000, $50,000 (for former employees) from Form W-2, box 12,
as figured on line 12 of Form 8959). Kathleen and Liam code N. If you have more than one Form W-2, add the
owe Additional Medicare Tax of $180.00 ($20,000 x 0.9% amounts in box 12, codes B and N, of all your Forms W-2
(0.009), as figured on line 13 of Form 8959). Kathleen and and enter the total here. If you are filing a joint return, also
Liam must file Form 8959. include these amounts, if any, from your spouse's Form(s)
W-2. However, don't include any amounts reported on
Part III—Additional Medicare Tax on
Form W-2, box 12, codes B and N, for uncollected RRTA
Railroad Retirement Tax Act (RRTA) Medicare tax.

Compensation Note. Both Medicare tax and Additional Medicare Tax
If you (and your spouse if filing a joint return) didn't have withholding are reported together on Form W-2, box 6.
RRTA compensation, skip Part III and go to Part IV.
Line 23
Line 14 Enter the amount of Additional Medicare Tax withheld, if
Enter the total of your RRTA compensation and tips. The any, reported on Form W-2, box 14. If you have more than
amount of RRTA compensation for a railroad employee is one Form W-2, add the amounts in box 14 of all your
reported on Form W-2, box 14. If you have more than one Forms W-2 and enter the total here. If you are filing a joint
Form W-2, enter the total of the RRTA compensation return, include your spouse’s Additional Medicare Tax
amounts from box 14 of all Forms W-2. If you are filing a withheld. An employee representative subject to RRTA
joint return, also include your spouse’s RRTA taxes should include the total Additional Medicare Tax
compensation. An employee representative subject to paid as reported on line 3 of Form CT-2 (include the total
RRTA taxes should include the total compensation subject Additional Medicare Tax paid from line 3 of all Forms CT-2
to Tier 1 Medicare tax as reported on line 2 of Form CT-2 filed for 2023).
(include the total of the compensation amounts from line 2
of all Forms CT-2 filed for 2023). Line 24
Include the amount from line 24 on the following line of
Line 17 your tax return.
Multiply line 16 by 0.9% (0.009). This is your Additional • If you file Form 1040, 1040-SR, or 1040-NR, include
Medicare Tax on RRTA compensation. Enter the result on this amount on line 25c combined with your federal
this line and go to Part IV. income tax withholding.
• If you file Form 1040-SS, include this amount on line 12
Part IV—Total Additional Medicare Tax of Part I.

Line 18 Attach your completed Form 8959 to Form 1040,
Include the amount from line 18 on the following line of 1040-SR, 1040-NR, or 1040-SS.
your tax return.
• Line 11 of Schedule 2 (Form 1040).

-4- Instructions for Form 8959 (2023)

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