The IRS has released draft instructions for Form 8959, which individuals will use to calculate the amount of additional 0.9% Medicare tax owed. The instructions are available at www.irs.gov/pub/irs-dft/i8959–dft.pdf.
Under the 2010 Patient Protection and Affordable Care Act, beginning in 2013 individuals must pay an additional 0.9% Medicare tax on earned income above certain thresholds. The employee portion of the Medicare tax is increased from 1.45% to 2.35% on wages received in a calendar year in excess of $200,000 ($250,000 for married couples filing jointly; $125,000 for married filing separately). Employers must withhold and remit the increased employee portion of the Medicare tax for each employee whose wages for Medicare tax purposes from the employer are over $200,000.