Get IRS 8959 2020-2024

You must file Form 8919, Uncollected Social Security and Medicare Tax on Wages, to report your wages and compute any Social Security and Medicare taxes due. You must also file Form 8959, Additional Medicare Tax, to compute any Additional Medicare Tax due.

An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year. The 8959 screen is located in a 1040 return on the Taxes tab.

The Additional Medicare Tax applies to wages, railroad retirement (RRTA) compensation, and self-employment income over certain thresholds. Employers are responsible for withholding the tax on wages and RRTA compensation in certain circumstances.

Railroad retirement (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 railroad retirement (RRTA) compensation paid in excess of $200,000 in a calendar year.

If your withholding is more than the tax you owe, then you can claim a refund for the difference. ... In addition to income tax withholding, your employer will also withhold payroll taxes for Social Security and Medicare. Employees pay 6.2% of their wages in Social Security taxes and 1.45% in Medicare taxes.

Medicare payroll tax on earned income The Medicare payroll tax is 2.9%. It applies only to earned income, which is wages you are paid by an employer, plus tips. You're responsible for 1.45% of the tax, and it's deducted automatically from your paycheck. Your employer pays the other 1.45%.

For 2019, an employee will pay: 6.2% Social Security tax on the first $132,900 of wages (maximum tax is $8,239.80 [6.2% of $132,900]), plus. 1.45% Medicare tax on the first $200,000 of wages ($250,000 for joint returns; $125,000 for married taxpayers filing a separate return), plus.

There is a maximum amount of compensation subject to the OASDI tax, but no maximum for HI. For 2019, the FICA tax rate for employers is 7.65% 6.2% for OASDI and 1.45% for HI. For 2019, an employee will pay: 6.2% Social Security tax on the first $132,900 of wages (maximum tax is $8,239.80 [6.2% of $132,900]), plus.

The additional 0.9 percent Medicare tax on wages above $200,000 for individuals ($250,000 married filing jointly), which went into effect in 2013, remains in effect for 2018, as does the Medicare tax of 3.8 percent on investment (unearned) income for single taxpayers with modified adjusted gross income (AGI) more than ...

When a portion of an individual's wages will be subject to the additional tax, but earnings from a particular employer do not exceed the $200,000 threshold for withholding of the tax by the employer, the employee is responsible for calculating and paying the additional 0.9% Medicare tax.

Under this mandate, in addition to withholding Medicare tax at 1.45%, employers must withhold a 0.9% Additional Medicare Tax from wages paid to an employee once earnings reach $200,000 in a calendar year. ... Additional Medicare Tax is only imposed on the employee.

Form 8959 (Additional Medicare Tax) is used to figure the additional 0.9% percent Medicare tax on the portion of wages, self-employment, and railroad retirement income that exceeds a certain threshold ($200,000 for individuals, $250,000 for spouses filing jointly, and $125,000 for spouses filing separately).