Additional Forms May Be Required for 2013 Filing

If either or both of the surtaxes that took effect in January 2013 apply to you, be prepared to see additional forms included with your federal income tax return this year.

  • Form 8959, Additional Medicare Tax is used to report the 0.9% surtax on your wages, Railroad Retirement Tax Act compensation, or self-employment income. The surtax kicks in if your income is greater than $250,000 when you’re married filing jointly, or $200,000 when you’re single.

    Your employer was only required to withhold for this tax if your salary exceeded $200,000, without regard to income you or your spouse earned elsewhere. That means you may not have had enough tax withheld. You’ll use Form 8959 to reconcile the difference between what your Form W-2 shows as withheld and what you actually owe.

  • Form 8960, Net Investment Income Tax is used to report the new 3.8% tax assessed on your income from interest, dividends, capital gains, some annuities, and passive income.

    To calculate the tax, you compare your investment income less certain expenses to how much of your modified adjusted gross income exceeds $250,000 when you file jointly ($200,000 when you’re single). The tax applies to the lesser of the two.

Contact us if you want more details or assistance with your tax filing.