© FTI Publishing, LLC 2013 -
Individual Income Tax Guide
Line 57 – Self-
You must pay SE tax if you had net earnings of $400 or more as a self-
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-
Exception: If only item (1) applies and distribution code 1 is correctly shown in box 7 of Form 1099-
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-
Table of Contents
Chapter 5 – Other Taxes