Other Taxes You May Owe

Other More Unusual Taxes You Might Owe

Tax Preparation
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Preparing your 1040 involves more than just determining the tax you owe on earned and unearned income -- other taxes may be due as well. You could owe self-employment tax, additional taxes on unreported tips, additional taxes on the early withdrawal of retirement funds and household employment taxes.

Just like tax credits reward certain activities, additional taxes increase the cost of various activities.

The most common other taxes are for early withdrawal of retirement savings before age 59½ and self-employment taxes for independent contractors and freelancers. Here's a breakdown of additional taxes you may owe and how to report them on your 1040. 

  • Self-Employment tax: If you had worked for someone else, your employer would have matched your Social Security and Medicare tax contributions for the year. You must pay both shares if you're self-employed. This is the self-employment tax and you can calculate what you owe on Schedule SE. Enter it on line 57 of your 1040 and attach your Schedule SE. 
  • Social Security and Medicare taxes on unreported tips: You may owe additional Social Security and Medicare taxes if you work in a service industry and earn tips for which your employer did not withhold during the tax year. Complete Form 4137 and/or Form 8919 and enter the amount on line 58 of your 1040. Attach the forms. 
  • Additional taxes on early withdrawals from IRAs: You'll owe taxes on early withdrawals you take from IRAs and other qualified retirement plans. Complete Form 5329 and enter the resulting number on line 59 of your 1040.
  • Household employment taxes: You may have heard of these as the "nanny tax." You may owe these taxes if you employ anyone in your home, such as a nanny for your children or a housekeeper. Complete Schedule H and enter the result on line 60a of your 1040. Attach Schedule H. 
  • First-time homebuyer credit repayment: You'll owe this if you sold or moved out of the home for which you claimed this credit. Complete Form 5405 and enter the result on line 60b of your 1040. 
  • : Enter the penalty on line 61 of your 1040 if you owe it under the terms of the Affordable Care Act. 
  • Line 62 covers both the  tax some high-income taxpayers may owe, as well as net investment income taxes. You can calculate these on ​​ and . 

Line 63: Your Total "Other" Taxes

Add up Lines 56 through 62. Line 56 covers income included in the rest of your return. Enter the total figure on Line 63. This is your total tax liability. Compare this figure to your total tax from previous years to determine if your taxes are going up, going down, or staying about the same.

NOTE: Federal tax laws change periodically. This information is current for 2015 federal tax returns. The rules may change in subsequent years. Please consult with a tax professional for the most up-to-date advice. The information contained in this article is not intended as tax advice and it is not a substitute for tax advice.