you will have to complete all sections that apply. Once you complete Form 8959 and figure out the total Additional Medicare Tax you're responsible for, the final section of the form subtracts the tax you paid through paycheck withholding as shown on your W-2. The result shows if ...
Here is how it works for each. The additional Medicare tax (On earned wages) When theAffordable Care Act(ACA) – also known as Obamacare — went into effect in 2013, it expanded the Medicare payroll tax to include the Additional Medicare Tax. Here’s the breakdown: ...
Additional Medicare tax for high earners In 2013, the Additional Medicare Tax came into effect. It added an additional 0.9% in Medicare taxes for employee earnings and self-employed income above a certain threshold. For employees, that threshold is $200,000 in 2024. That means that for every...
Key Dates for Affordable Care Act (ACA) Open EnrollmentWhat Is Form 8959: Additional Medicare TaxThe above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, ...
This equals 7.65% in FICA taxes per paycheck (until the Social Security wage base is reached), which you are legally obligated to match.Some employees may also be subject to Additional Medicare tax. Starting with the pay period in which an individual’s earnings exceed $200,000, you must ...
If you must pay for Part A, the premium is as much as $518 per month in 2025, depending on you and your spouse's work and Medicare tax history [6]. Aside from Part A premiums, there are other costs based on your health care use. The table below summarizes your share of costs ...
The amount you withhold is determined by the Forms W-4 submitted by your employees and current tax rates. In addition, the United States government requires that you pay federal unemployment tax (FUTA) and match what your employees pay in Social Security and Medicare taxes. Withhold additional ...
think of the Medicare tax as just 1.45 percent, since that is what they see collected. Employers are required to withhold 1.45 percent of each paycheck. In addition to that withholding, employers are required to pay an additional 1.45 percent from their own pocket for a total tax of 2.9 ...
Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software. SSA-1099: Social Security Benefit StatementReports the amount of benefits paid and repaid. Also shows Medicare premiums, federal income taxes, and other amounts withheld from your benefits.Re...
For Medicare taxes, the filers will owe additional Medicare tax, since the combined income is over $275,000. The employer of the spouse earning $225,000 is responsible for withholding the additional Medicare tax of $225 ($25,000 x 0.9%), in addition to the regular Medicare tax amount of...