As a result of the Affordable Care Act (ACA), the IRS has implemented new tax provisions. Higher-income taxpayers will be subject to an additional 0.9 percent Medicare tax on earned income and a 3.8 percent tax on net investment income (NIIT). These new taxes, if applicable, will be reported on the 2013 return on the following forms.
- Form 8959, Additional Medicare Tax, calculates the additional 0.9 percent Medicare tax on earned income. In addition, Form 8959 will reconcile the total additional Medicare tax withholding on Medicare wages.
- Form 8960, Net Investment Income Tax – Individuals, Estates, and Trusts, calculates the 3.8 percent tax on net investment income.
Applicable info entered elsewhere in UltraTax CS transfers automatically to these new forms. To make an election, or to adjust an automatically calculated amount, visit Screen ACA Tax under the Taxes folder. On Screen W2, the Box 6 Medicare withholding will automatically calculate the additional 0.9 percent tax when applicable and generate an UltraTax CS diagnostic.
For more info on ACA tax provisions, refer to the following IRS webpage: Affordable Care Act (ACA) Tax Provisions.
For more info on ACA Health Care Reform, refer to the following article on our user-friendly Help & How-To Center: 1040 – US: Understanding the Affordable Care Act (ACA) Health Care Reform.
To access the Help & How-To Center directly from UltraTax CS by holding your CTRL key plus the letter Y. You may also click the Help button from the toolbar of UltraTax CS.