Schedule 2, Additional Taxes

This schedule is used to report additional taxes owed that aren't covered on the main Form 1040.

  • Alternative minimum tax (AMT): A separate tax calculation designed to ensure that higher-income earners still pay a minimum amount of tax, especially if they have many deductions or tax credits that would otherwise lower their tax bill significantly.
  • Excess advance premium tax credit repayment: Applies if you receive health coverage through a Health Insurance Marketplace. If you received more Advance Premium Tax Credit than you qualify for based on your final yearly income, you might need to pay back the excess.
  • Self-employment tax: Social Security and Medicare tax for people who work for themselves. Normally, these taxes are split between employers and employees, but if you're self-employed, you're responsible for both portions.
  • Household employment taxes: If you paid a household employee (like a nanny or a housekeeper) more than a certain amount, you might owe this "Nanny tax."
  • Additional tax on IRAs, other qualified retirement plans, etc.: If you took an early distribution from a retirement plan or IRA, or if you didn't take a required minimum distribution, you might owe additional tax.
  • Net investment income tax: High-income taxpayers may be subject to an additional 3.8% tax on some or all of their net investment income.
  • Additional Medicare Tax: An additional 0.9% tax that applies to individuals with an income above a certain threshold.
  • Other taxes: Here, you can report taxes from Forms 8959, 8960, and other sources.

Remember, you don't need to fill out every part of Schedule 2 — just the parts that apply to your situation. After completing the form, you add up all these additional taxes and include this total on your main Form 1040.