Park University Accounting Additional Medicare Tax Form 8959 Paper This practical application requires you to compute additional Medicare tax for a high-wa

Park University Accounting Additional Medicare Tax Form 8959 Paper This practical application requires you to compute additional Medicare tax for a high-wage earner and report the information using the applicable tax form.

Tax Forms

Tax forms are used to report PBC and source document information on your individual income tax return (e.g. Form 1040).

Form 8959 – Compensation Practical Application.pdf
Due Date
By Saturday at 11:59 P.M., CT.
Case Information

Lionel, a single taxpayer, reported $46,175 of self-employment income on his 2018 Schedule SE, Section B, Line 6.

Lionel also received two Forms W-2 in 2018; the applicable amounts for Medicare wages and Medicare tax withheld are summarized below:

LIONEL’S W-2 FORMS
Form W-2 Description Form W-2 Box # Amount
Employer A
Medicare wages and tips Box 5 119,000.00
Employer A
Medicare tax withheld Box 6 1,725.50
Employer B
Medicare wages and tips Box 5 70,000.00
Employer B
Medicare tax withheld Box 6 1,015.00
Directions
Prepare Form 8959 (Parts I, II, IV, V)
Download Form 8959 – Compensation Practical Application.pdf.
Complete Parts I, II, IV and V of Form 8959 using the case information provided above.
Submit the completed tax form.