Form 8959 Calculator
Work out the 0.9% additional Medicare tax for you and your spouse, and whether withholding covered it.
Form 8959 additional Medicare tax calculator
What Form 8959 does
The additional Medicare tax is 0.9% on wages, self-employment income and railroad compensation above $200,000 (single, head of household), $250,000 (joint) or $125,000 (married filing separately). Form 8959 works out what you owe and credits what employers withheld. Only the employee pays it; there's no employer match.
Why withholding is often wrong
An employer must withhold the 0.9% once it pays you more than $200,000 in a year, whatever your filing status. So:
- Two earners under $200,000 each but over $250,000 together have nothing withheld and owe it on the return.
- One earner at $200,000-$250,000 filing jointly has tax withheld that isn't owed, and gets it back.
Worked example
A married couple earns $180,000 and $150,000. Their combined $330,000 is $80,000 over the joint threshold, so they owe $720.00. Neither employer passed $200,000, so nothing was withheld, and the whole amount is due with the return; plan for it with extra withholding on Form W-4 (check it with the bring home pay calculator). Investment income over the same thresholds is covered by Form 8960; regular Medicare and Social Security are explained on the FICA tax page.
Common questions
What is the additional Medicare tax threshold?
$200,000 single, $250,000 joint, $125,000 married filing separately.
When does an employer withhold additional Medicare tax?
Once it pays you more than $200,000 in the year, regardless of filing status.
Is there an employer match for the 0.9% tax?
No, only the employee pays it.
Sources
More paycheck and tax calculators: Form 8863 Calculator · Form 8949 Calculator · Form 8962 Calculator
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.