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Individual Income Tax Guide

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Line 57 – Self-Employment Tax

Line 58 – Unreported Social Security and Medicare Tax from Forms 4137 and 8919

Line 59 – Additional Tax on IRAs, Other Qualified Retirement Plans, etc.

Line 60a – Household Employment Taxes from Schedule H

Line 60b – First-time Homebuyer Credit Repayment

Line 61 – Health Care: Individual Responsibility

Line 62 – Other Taxes


Line 57 – Self-Employment Tax: Enter the tax from line 5 or line 11 of Schedule SE, Self-Employment Tax on this line.

You must pay SE tax if you had net earnings of $400 or more as a self-employed person. If you are in business (farm or nonfarm) for yourself, you are self-employed. You must also pay SE tax on your share of certain partnership income and guaranteed payments from partnerships. Special rules apply for certain ministers, members of religious orders, and employees of a church or qualified church-controlled organization that has a certificate in effect electing an exemption from employer social security and Medicare taxes. See the instructions to Schedule SE for more information about the self-employment tax.

Line 58 – Unreported Social Security and Medicare Tax from Forms 4137 and 8919: Enter the total of any taxes from Form 4137, Social Security and Medicare Tax on Unreported Tip Income, and Form 8919 Uncollected Social Security and Medicare Tax on Wages. Check the appropriate box(es).

Form 4137:   If you received tips of $20 or more in any month and you did not report the full amount to your employer, you must pay the social security and Medicare or railroad retirement (RRTA) tax on the unreported tips.

Do not include the value of any noncash tips, such as tickets or passes. You do not pay social security and Medicare taxes or RRTA tax on these noncash tips.

To calculate the social security and Medicare tax, use Form 4137. If you owe RRTA tax, you should contact your employer. Your employer will calculate and collect the RRTA tax.

NOTE: You may be charged a penalty equal to 50% of the social security and Medicare or RRTA tax due on tips you received but did not report to your employer.

Form 8919:   If you received wages from an employer who did not withhold social security and Medicare tax from your wages, use Form 8919 to calculate your share of the unreported tax. Include on line 58 the amount from line 13 of Form 8919. Include the amount from line 6 of Form 8919 on Form 1040, line 7.

Line 59– Additional Tax on IRAs, Other Qualified Retirement Plans, etc.: If any of the following apply, see Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, and its instructions to find out if you owe this tax and if you must file Form 5329.

Exception: If only item (1) applies and distribution code 1 is correctly shown in box 7 of Form 1099-R, you do not have to file Form 5329. Instead, multiply the taxable amount of the distribution by 10% (.10) and enter the result on line 59. The taxable amount of the distribution is the part of the distribution you reported on Form 1040, line 15b or line 16b, or on Form 4972, Tax on Lump-Sum Distributions (From Qualified Plans of Participants Born Before January 2, 1936). Also, enter “No” under the heading Other Taxes to the left of line 59 to indicate that you do not have to file Form 5329. But you are required to file Form 5329 if distribution code 1 is incorrectly shown in box 7 of Form 1099-R or you qualify for an exception, such as the exceptions for qualified medical expenses, qualified higher education expenses, qualified first-time homebuyer distributions, or a qualified reservist distribution.

Line 60a – Household Employment Taxes: Enter the household employment taxes you owe for having a household employee. If any of the following apply, see Schedule H and its instructions to find out if you owe these taxes.

Any person who does household work is a household employee if you can control what will be done and how it will be done. Household work includes work done in or around your home by babysitters, nannies, health aides, maids, yard workers, and similar domestic workers.

Line 60b – First-time Homebuyer Credit Repayment: Enter the amount of your first-time homebuyer credit repayment on this line. See the instructions for Form 5405, Repayment of the First-Time Homebuyer Credit, for more information about whether you must make a repayment and wether you should file Form 5405 with your return.

Table of Contents

Chapter 5 – Other Taxes