
Understanding the Additional Medicare Tax and Form 8959 Withholding Reconciliation
Understanding the Additional Medicare Tax and Form 8959 Withholding Reconciliation
The U.S. tax code includes a variety of provisions designed to fund government programs, including Medicare. One such provision is the Additional Medicare Tax, which applies to high-income earners. If you or your clients earn above a certain threshold, understanding how this tax works—and how it’s reconciled on Form 8959—is crucial for accurate tax reporting and compliance.