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Alabama Form 9297: What You Should Know
If you need the IRS to help you figure the Additional Medicare Tax, talk to your account administrator for more information about the Form 5980. You can also search for this tax on IRS.gov and look at the box that says Additional Medicare Tax. How to Report the Additional Medicare Tax on Form 8959 and on Form 1040 If you have self-employment income, you file Form 8959 if the sum of your self-employment earnings and wages or the RITA compensation you earned during the tax year exceeds the threshold. What is the threshold? The threshold is the amount you would have to earn in a year before you have to calculate the Additional Medicare Tax on your self-employment earnings. What if you earn more than the threshold? If you earn more than the threshold, you must use Form 1040 to figure your Additional Medicare Tax. When you enter your Social Security tax filing or payer name and pay date, enter “RITA-PATTA” for all income tax withholding in box No. 2 of Form 1040 to report the Additional Medicare Tax you owe. The IRS asks if the amount in box No. 2 of your Form 1040 is the additional amount of Additional Medicare Tax you paid. If your tax return has changed, check to be sure that it reflects how you reported your income during this year. How do you figure the Additional Medicare Tax? Use Form 8959 to figure the amount of Additional Medicare Tax to deduct or withhold for your self-employment business, farm, or fishing income. Your employer withholds income tax from your self-employment income by filing a withholding notice. You should also file a Form 5498 to report your income tax withholding from your self-employment business. To figure the amount of Additional Medicare Tax to deduct or withhold for your farm business, see the page on Self-Employment Taxes: For Individuals With a Farming Business on IRS.gov. For further information on Self-Employment Tax or the Self-Employment Tax under Medicare, visit the IRS website at. The Medicare Tax FAQs will help answer specific questions about Medicare, but you can get answers about any other tax topic in the IRS Newsletters. If you have any questions about the Medicare tax and the Additional Medicare Tax, call.
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