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Additional Medicare Tax 2023 Form: What You Should Know

Aug 20, 2023 — Information about Form 8959, Additional Medicare Tax, including recent updates, related forms, instructions on how to file. F8959--2018.pdf — IRS Part I. Additional Medicare Tax on Medicare Wages. See: Form 8959. Form 8959—Additional Medicare Tax Reconcile — TaxA ct A form to be filed with Form 1040, U.S. Individual Income Tax Return, in lieu of having to file Form 1040. Also, see: Part I. Additional Medicare Tax on  Wage Income and Tips from Form W-2. Do not include wages and tips from Form 1099. A Form W-2, should be used to report wages and tips from an employer.  If you have more than one, enter what you've received and enter your actual total on the first line. What Is Form 8959: Additional Medicare Tax — TurboT ax Form 8959 consists of three parts to figure out how much Additional Medicare Tax you owe, if any. You report the entire amount received. Form 8959 — Additional Medicare Tax Reconcile — TurboT ax The A1 tax return includes Form W-2, also known as Form W-2G. Part I. Additional Medicare Tax on  Income From Employment. If you've received wages and tips, enter the total and add all the amounts. Enter all amounts earned by you. How to figure Additional Medicare Tax on the form. You do not include your federal income taxes on your Form. See Form 8959 for information on this tax. Do not use this form for Form 1040 (Individual Income Tax Return). For information on other uses of Form 8959, see the instructions for Form 8959. Where to file the form. In most cases, you report the Additional Medicare Tax on Form 1040(A) and Form 1040(B), the two-page IRS tax forms. You must file both forms separately. To figure the Additional Medicare Tax on Form 1040(A) if you report wages and tips from Form W-2, use the following steps. For Forms W-2 (Form W-2G) you must keep records of all benefits you receive from your employer and the total amount by which your wages exceed your tip income and include the amount shown on Form W-2 on your Form 1040(A).

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FAQ - Additional Medicare Tax 2023

What is the income threshold for additional Medicare tax?
A .9% Additional Medicare Tax applies to Medicare wages, self-employment income, and railroad retirement (RRTA) compensation that exceed the following threshold amounts based on filing status. $250,000 for married filing jointly; $125,000 for married filing separately; and. $200,000 for all other taxpayers.
What is additional Medicare tax based on?
An individual will owe Additional Medicare Tax on wages, compensation and self-employment income (and that of the individual's spouse if married filing jointly) that exceed the applicable threshold for the individual's filing status.
What is the additional Medicare tax for 2021?
A .9% Additional Medicare Tax applies to Medicare wages, self-employment income, and railroad retirement (RRTA) compensation that exceed the following threshold amounts based on filing status. $250,000 for married filing jointly; $125,000 for married filing separately; and. $200,000 for all other taxpayers.
Why do I pay additional Medicare tax?
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.
How do I avoid Medicare surtax?
Look for ways to minimize your AGI. The lower your AGI (the number at the bottom of the TAX-FORM 1040) the lower the amount of your income will be subject to the 3.8% surtax. Need another reason to contribute to your retirement plan? Making contributions to your 401k, 403b or pension will lower your AGI.
How is additional Medicare calculated?
It is paid in addition to the standard Medicare tax. An employee will pay 1.45% standard Medicare tax, plus the .9% additional Medicare tax, for a total of 2.35% of their income....What is the additional Medicare tax? StatusTax thresholdmarried tax filers, filing separately$125,0003 more rows ‣ 24 Sept 2020
What is the Medicare surtax for 2022?
The 2023 Medicare tax rate is 2.9%. Typically, you're responsible for paying half of this total Medicare tax amount (1.45%) and your employer is responsible for the other 1.45%. Your Medicare tax is deducted automatically from your paychecks.
How is Medicare surtax 2023 calculated?
For 2023. an employee will pay. 6.2% Social Security tax on the first $147,000 of wages (6.2% of $147,000 makes the maximum tax $9,114), 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.
How much is additional Medicare?
The Additional Medicare Tax is an extra .9 percent tax on top of the standard tax payment for Medicare. The additional tax has been in place since 2023 as a part of the Affordable Care Act and applies to taxpayers who earn over a set income threshold.
What is the additional Medicare tax?
The Additional Medicare Tax is an extra .9 percent tax on top of the standard tax payment for Medicare. The additional tax has been in place since 2023 as a part of the Affordable Care Act and applies to taxpayers who earn over a set income threshold.
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