Form 8959 – Additional Medicare Tax

Last reviewed: 2025-10-26

Use the IRS Form 8959: High-Income Medicare Tax Tax Form Calculator IRS Form 8959: High-Income Medicare Tax as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 8959 state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Form 8959 is used by high-income individuals to compute the Additional Medicare Tax due on wages, compensation, or self-employment income. This 0.9% surtax applies once income exceeds certain IRS thresholds and must be reported separately from regular Medicare tax.

Thresholds for the Additional Medicare Tax:

$250,000 for Married Filing Jointly
$125,000 for Married Filing Separately
$200,000 for Single, Head of Household, or Qualifying Widow(er)

Employers are required to withhold this additional tax from wages exceeding $200,000, regardless of your filing status. If you and your spouse combine incomes above the threshold, you may owe more at filing.

Additional Medicare Tax
Name(s) shown on return				Your social security number
Part I. Additional Medicare Tax on Medicare Wages
1	Medicare wages and tips from Form W-2, box 5. If you have more than one Form W-2, enter the total of the amounts from box 5		1
2	Unreported tips from Form 4137, line 6		2
3	Wages from Form 8919, line 6		3
4	Add lines 1 through 3		4
5	Enter the following amount for your filing status: Married filing jointly ▸ Married filing separately ▸ Single, Head of household, or Qualifying widow(er) ▸	$ $ $	5
6	Subtract line 5 from line 4. If zero or less, enter -0-				6
7	Additional Medicare Tax on Medicare wages. Multiply line 6 by 0.9% (). Enter here and go to Part II				7
Part II. Additional Medicare Tax on Self-Employment Income
8	Self-employment income from Schedule SE (Form 1040), Section A, line 4, or Section B, line 6. If you had a loss, enter -0- (Form 1040-PR and Form 1040-SS filers, see instructions.)		8
9	Enter the following amount for your filing status: Married filing jointly ▸ Married filing separately ▸ Single, Head of household, or Qualifying widow(er) ▸	$ $ $	9
10	Enter the amount from line 4		10
11	Subtract line 10 from line 9. If zero or less, enter -0-		11
12	Subtract line 11 from line 8. If zero or less, enter -0-				12
13	Additional Medicare Tax on self-employment income. Multiply line 12 by 0.9% (). Enter here and go to Part III				13
Part III. Additional Medicare Tax on Railroad Retirement Tax Act (RRTA) Compensation
14	Railroad retirement (RRTA) compensation and tips from Form(s) W-2, box 14 (see instructions)		14
15	Enter the following amount for your filing status: Married filing jointly ▸ Married filing separately ▸ Single, Head of household, or Qualifying widow(er) ▸	$ $ $	15
16	Subtract line 15 from line 14. If zero or less, enter -0-				16
17	Additional Medicare Tax on railroad retirement (RRTA) compensation. Multiply line 16 by 0.9% (). Enter here and go to Part IV				17
Part IV. Total Additional Medicare Tax
18	Add lines 7, 13, and 17. Also include this amount on Form 1040, line 62, (Form 1040NR, 1040-PR, and 1040-SS filers, see instructions) and go to Part V				18
Part V. Withholding Reconciliation
19	Medicare tax withheld from Form W-2, box 6. If you have more than one Form W-2, enter the total of the amounts from box 6		19
20	Enter the amount from line 1		20
21	Multiply line 20 by 1.45% (). This is your regular Medicare tax withholding on Medicare wages		21
22	Subtract line 21 from line 19. If zero or less, enter -0-. This is your Additional Medicare Tax withholding on Medicare wages				22
23	Additional Medicare Tax withholding on railroad retirement (RRTA) compensation from Form W-2, box 14 (see instructions)				23
24	Total Additional Medicare Tax withholding. Add lines 22 and 23. Also include this amount with federal income tax withholding on Form 1040, line 64 (Form 1040NR, 1040-PR, and 1040-SS filers, see instructions)				24

How Form 8959 Works:

Part I: Calculates Additional Medicare Tax on wages and Railroad Retirement Tax Act (RRTA) compensation.
Part II: Applies to self-employment income using Schedule SE values.
Part III: Combines both wage-based and self-employed income to determine final tax due.

Form 8959 flows through to Schedule 2 (Form 1040), Line 11. Even if you had Medicare tax withheld via payroll, Form 8959 ensures all additional liabilities are settled correctly.

Last reviewed: 2025-10-26: If you believe this form requires an update, please contact us.

Planning tips for avoiding underpayment

High earners often face underpayment penalties if they don’t plan for this surtax. You can:

Adjust Form W-4 with additional Medicare withholding.
Make quarterly estimated payments to cover the gap if self-employed.
Review income thresholds regularly—filing status directly affects liability.

Use our Form 8959 calculator to simulate your expected Medicare tax and identify underpayment risks before filing. For full IRS details, see official instructions.

Frequently Asked Questions

Can I estimate the General Business Credit?

Start with Form 3800 and then reflect the credit here.

How much would a 401(k) contribution change my net?

Model it with the 401(k) Calculator then rerun this page with your pre-tax amount.

Considering an IRS Offer in Compromise?

Read through Form 656-B to understand eligibility and steps.

What does FICA include?

FICA includes Social Security and Medicare payroll taxes withheld from employee wages.

Is there a quick pay-frequency comparison?

Yes—switch frequency on this page; for employer filings see 941 vs 944.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.