Schedule 2 (Form 1040), Additional Taxes
Use Schedule 2 (Form 1040) to report extra taxes you owe but aren’t included in your regular income tax calculation. This includes Alternative Minimum Tax (AMT), self-employment tax, unreported Social Security or Medicare taxes, as well as additional tax on retirement plans (early withdrawals) and household employment taxes.
Who Should Use Schedule 2?
Schedule 2 is typically used by high-income taxpayers, self-employed individuals, and household employers. Taxpayers with retirement account penalties, or those who must repay some of their healthcare (ACA) credit, should also use this form.
How to Complete Schedule 2 (Form 1040)
Schedule 2 (Form 1040) is two pages and has two (2) sections. At the top of the form, include your name and Social Security number (SSN) as it appears on your tax return.
Part I: Tax
Before the 2017 Tax Cuts and Jobs Act (TCJA), the information in this section was included on lines 45 and 46 of Form 1040.
Line 1a through 1y – Enter excess advance premium tax credit repayments (Form 8962) on 1a. Repayments of clean vehicle credits (new and previously owned) transferred to a registered dealer will go on 1b and/or 1c (Form 8936 & Schedule A). If you have a recapture of net EPE (Form 4255), it should be entered on 1d. Additional payments from EPE are also entered on 1e and 1f. If you have other additional tax to report, enter it on 1y.
Line 1z – Follow the calculation instructions.
Line 2 – Enter any Alternative Minimum Tax (AMT) from Form 6251 here.
Line 3 – Follow the calculation instructions.
Part II: Other Taxes (Page 1)
The information in this section was previously reported on Schedule 4 (2018).
Line 4 – Enter your self-employment tax (Schedule SE) here and check the appropriate box if you have an exemption.
Line 5 – Employment tax (Social Security and Medicare) on unreported tip income (Form 4137) is entered here.
Line 6 – Record any uncollected Social Security and Medicare tax (Form 8919) on wages on line 6.
Line 7 – Follow the calculation instructions.
Line 8 – If required, enter additional tax on IRAs or other tax-favored accounts (Form 5329) here. Otherwise, check the box.
Line 9 – Schedule H, Household Employment Taxes, should be recorded on line 9.
Line 10 – intentionally blank
Line 11 – Enter additional Medicare taxes here (Form 8959).
Line 12 – Net investment income tax (Form 8960) is recorded on line 12.
Line 13 – If you have any tax shown in box 12 of your W-2, enter the amount here.
Line 14 – Enter an interest on tax due on installment income from the sales of certain residential lots and timeshares.
Line 15 – Interest on the deferred tax on gain from certain installment sales (over $150k) is recorded here.
Line 16 – Recapture of low-income housing credit (Form 8611) goes here.
Part II: Other Taxes (Page 2)
Line 17 – Any additional taxes not yet recorded should be included on one or more of the areas here. This includes additional tax on MSA distributions, golden parachute payments, look-back interest, and any other taxes not listed.
Line 18 – Enter the total for all additional taxes recorded on lines 17a through 17z.
Line 19 – Enter the recapture of net EPE from Form 4255, line 1d, column (I).
Line 20 – Section 965 net tax liability installment from Form 965-A goes here.
Line 21 – Follow the calculation instructions.
Need Help?
If you need help completing Schedule 2 (Form 1040) or other tax forms, please contact Tax Defense Network at 855-476-6920 for a free consultation. free consultation. We offer a variety of affordable tax services, including tax prep and audit assistance.
