If you didn’t know already, that you may be eligible for an Additional Medicare Tax if your income exceeds the limits that are in place. Any income that you get, this includes self-employment income, railroad retirements (RRTA) Compensation and your normal wages, the Additional Medicare Tax is 0.9 percent of that income if it is more than the threshold amount. Depending on your status the threshold varies to you.
This table shows the threshold amount
Filing Status Threshold Amount
Qualifying widow(er) with dependent child £200,000
Head of household £200,000
Single £200,000
Married filing separately £125,000
Married filing jointly £250,000
To make sure you fall in the correct threshold, you will need to combine your self-employment and your normal wages. With self-employment, you do not consider a loss when you figure this tax. You will have to compare PRTA compensation separately to the threshold. Employers must withhold the Additional Medicare Tax from their wages or the compensation when paying more than the £200,000 threshold in the whole year, without regarding your threshold status, income that you may have from other sources or wages paid to you by another employer. Your employer does not combine the wages for married couples to determine whether to withhold Additional Medicare Tax.
Depending on your status and your other income, you may owe more tax than the amount withheld. If you do in that case, you should request additional income tax withholding using the Form W-4, Employees Withholding Allowance Certificate or make an estimated tax payments. If you haven’t paid enough estimated tax or if you had too little tax withheld, then you may owe an estimated tax penalty.
If you do owe tax then you will need to file a form (Form 8959) with your tax returns. With this you need to report any Additional Medicare Tax withheld by your employer on the Form 8959.
