Form 8959

Additional Medicare Tax

Filing taxes can often be a complex and daunting process, especially when specific forms are required for particular tax situations, such as the IRS Form 8959. This comprehensive guide aims to demystify Form 8959, offering a detailed walkthrough to help individuals understand when this form is needed, how to accurately complete it, and the implications it has on their tax filing process.

What is a 8959 Form?

Detailed Description of a 8959 Form The IRS Form 8959, “Additional Medicare Tax,” is a tax form used to calculate and report additional Medicare taxes owed by taxpayers. This form became necessary with the introduction of the Affordable Care Act, which mandated an additional Medicare tax for high-income earners to help fund Medicare.

Purpose and Significance The primary purpose of Form 8959 is to assist taxpayers in determining the amount of Additional Medicare Tax they are obligated to pay on earnings that exceed pre-set thresholds. This includes wages, compensation, and self-employment income. The form ensures that individuals contribute their fair share towards Medicare, based on their income level.

Components of the Form Form 8959 consists of two parts:

  • Part I requires taxpayers to calculate their Additional Medicare Tax on wages and self-employment income that exceed the threshold amounts.
  • Part II is for self-employed individuals to calculate the deductible portion of their Additional Medicare Tax.

Who Needs a 8959 Form?

Criteria Taxpayers need to file Form 8959 if:

  • Their wages, compensation, or self-employment income (combined with their spouse if filing jointly) exceed the income threshold for their filing status.
  • They had Medicare taxes withheld from their pay, and they owe additional Medicare Tax.

Obligations Individuals obligated to file Form 8959 must accurately report and calculate any owed Additional Medicare Tax, ensuring they meet their tax obligations based on their income.

Deadlines Form 8959 should be filed along with your annual tax return, typically due by April 15 of the following year.

How to Read and Understand 8959 Form

Understanding Form 8959 involves recognizing its two main parts and its specific terminologies:

  1. Medicare Wages and Compensation: Sum of all Medicare-covered earnings.
  2. Self-Employment Income: Income from business ventures not covered under traditional employment.
  3. Additional Medicare Tax Withholding: The amount of Medicare Tax withheld beyond the standard rate.

Each line of the form guides the taxpayer in calculating the additional tax owed, based on varying income levels and sources.

How to Get Your 8959 Form

Procedures Taxpayers can obtain Form 8959 directly from several sources:

  • Downloading from the IRS website.
  • Requesting a physical copy by mail from the IRS.
  • Utilizing tax preparation software that includes the form.

Common Mistakes and How to Avoid Them

Filling out Form 8959 can be tricky. Common errors include:

  • Incorrect Income Reporting: Ensure all Medicare wages and self-employment income are accurately reported.
  • Miscalculating the Tax: Double-check the calculations as per the instructions on the form.


  • Use tax preparation software that automatically calculates Additional Medicare Tax.
  • Review the IRS instructions for Form 8959 thoroughly before submitting.

8959 Form and Tax Filing

Form 8959 plays a crucial role in the tax filing process for those with higher income. The calculated Additional Medicare Tax must be included in their tax return, and it has a direct impact on their total tax liability, potentially affecting refunds or amounts owed.

FAQ Section

  1. Who must file Form 8959? Anyone whose income exceeds the thresholds for their filing status.

  2. What are the income thresholds for needing to file Form 8959? Thresholds vary by filing status; check the latest IRS guidelines.

  3. Can I deduct the Additional Medicare Tax? Part of the tax related to self-employment income can be deductible.

  4. How do I know if I've had enough tax withheld? Compare the total tax liability with withholdings and estimated tax payments.

  5. What should I do if I made a mistake on my Form 8959? File an amended tax return using Form 1040-X, including a corrected Form 8959.


Understanding and properly filing Form 8959 is crucial for taxpayers who surpass the income thresholds for Additional Medicare Tax. By comprehensively following this guide, taxpayers can navigate the complexities of Form 8959, ensuring they fulfill their tax obligations accurately. However, for those with more complex situations or questions, consulting a tax professional is highly advised.

For further reading and resources related to Form 8959, visit the official IRS page for Form 8959, which includes the latest form and detailed instructions for the current tax year. This page serves as an authoritative resource for understanding and complying with the requirements for Additional Medicare Tax.

Always refer to the IRS website or a tax professional for the most accurate and up-to-date information. provides general information and software tools for tax preparation; however, it does not offer personalized tax, legal, or professional advice. It's recommended to consult with a qualified professional for specific advice related to your financial situation.