What is form 8959?

Form 8959, also known as the Additional Medicare Tax, is a tax form used by taxpayers to report and calculate the additional Medicare tax that may be owed on certain income. This tax is imposed on individuals who earn above a certain income threshold.

Form 8959 is filed along with the taxpayer's annual income tax return, typically Form 1040. The form requires information regarding the taxpayer's income subject to the additional Medicare tax, as well as any withholding or estimated payments made towards this tax throughout the year.

The additional Medicare tax rate is 0.9% on earned income above certain thresholds. For individuals, the threshold is $200,000 for single filers and $250,000 for married couples filing jointly. Employers are required to withhold this tax from employee wages once they exceed these thresholds.

Filing Form 8959 accurately ensures that taxpayers are correctly reporting and paying any additional Medicare tax owed. It is important for individuals with higher incomes to carefully review and understand the requirements of this form to avoid underpayment or penalties.