Form 1040 (SP) ANEXO 2 – Impuestos Adicionales (2022): A Complete Guide
What Form 1040 (SP) Anexo 2 Is For
Schedule 2 (Anexo 2), titled ""Impuestos Adicionales"" (Additional Taxes), is an attachment to your main Form 1040(SP), 1040-SR(SP), or 1040-NR(SP) that reports taxes beyond the standard income tax you calculate on your main return. Think of it as the ""extra taxes"" form that captures specialized levies the IRS couldn't fit on the first two pages of your return. These include the alternative minimum tax (AMT), repayments of health insurance subsidies you received in advance, taxes on retirement account mistakes, self-employment taxes for independent contractors, household employment taxes for people who hire nannies or housekeepers, and various penalty taxes for early withdrawals or missed requirements.
The form has two main sections. Part I deals with major additional taxes like AMT (line 1) and the repayment of excess advance premium tax credits if you received too much help paying for Marketplace health insurance (line 2). Part II covers ""other taxes,"" including self-employment tax (line 4), unreported Social Security and Medicare taxes on tips or misclassified work (lines 5-6), additional taxes on retirement accounts like IRAs (line 8), household employee payroll taxes (line 9), repayment of the first-time homebuyer credit from 2008 (line 10), Additional Medicare Tax for high earners (line 11), Net Investment Income Tax for investors with substantial income (line 12), and a lengthy list of specialized taxes and recaptures (lines 17a through 17z).
In plain English, if you're a W-2 employee with straightforward income and no side businesses, retirement account withdrawals, or household employees, you probably won't need Schedule 2. But if your tax situation involves any complexity beyond standard wages—freelancing income, early IRA distributions, health insurance subsidies through the Marketplace, high investment income, or employing a caregiver at home—Schedule 2 is where those additional tax obligations get reported.
When You'd Use Form 1040 (SP) Anexo 2
You must complete and attach Schedule 2 to your 2022 tax return if any of the following apply: you owe alternative minimum tax; you received advance payments of the premium tax credit for Marketplace health insurance and need to reconcile them; you have self-employment income requiring payment of self-employment tax; you received cash tips of $20 or more in any month that you didn't report to your employer; your employer treated you as an independent contractor but you believe you're actually an employee (and didn't withhold Social Security/Medicare taxes); you took an early distribution from an IRA or other retirement plan and owe the 10% penalty; you made excess contributions to retirement accounts; you paid a household employee (like a nanny, housekeeper, or caregiver) wages above certain thresholds; you're a high earner subject to the Additional Medicare Tax (0.9% on wages/self-employment income exceeding $200,000 for single filers, $250,000 for married filing jointly, or $125,000 for married filing separately); you have significant investment income and owe the 3.8% Net Investment Income Tax; or you received the first-time homebuyer credit in 2008 and must repay part of it.
The form is also required if you're recapturing (paying back) certain business credits, reporting uncollected Social Security/Medicare tax from your W-2 box 12 (codes A, B, M, or N), or dealing with specialized situations like distributions from health savings accounts (HSAs), Archer MSAs, golden parachute payments, or tax on accumulated trust distributions.
Late Returns
If you're filing after the April 18, 2023 deadline, you still must include Schedule 2 if any of these situations apply—the rules don't change based on when you file. However, filing late means you'll owe interest on unpaid taxes from the original due date, and potentially penalties for late filing and late payment.
Amended Returns
If you're filing Form 1040-X to amend your 2022 return and you discover you owed additional taxes that weren't reported on your original Schedule 2 (or you didn't file Schedule 2 at all), you must complete and attach Schedule 2 to your amended return. Common amendment scenarios include discovering unreported self-employment income, realizing you took an early IRA distribution without reporting the penalty, or learning that your employer should have withheld Social Security/Medicare taxes but didn't.
Key Rules or Details for 2022
Alternative Minimum Tax (AMT) - Line 1
For 2022, the AMT exemption amount is $75,900 for single filers, $118,100 for married filing jointly, and $59,050 for married filing separately. You might owe AMT if you claimed large deductions for state and local taxes, have significant long-term capital gains, exercised incentive stock options, received interest from private activity bonds, or claimed accelerated depreciation. Use the AMT worksheet in the instructions first to see if you need to complete the full Form 6251; exceptions exist if you only have certain straightforward items.
Premium Tax Credit Repayment - Line 2
If you or a family member enrolled in health insurance through the Health Insurance Marketplace and received advance premium tax credits (APTC) to lower monthly premiums, you must reconcile those advance payments against your actual credit on Form 8962. You'll receive Form 1095-A from the Marketplace showing what was paid on your behalf. If your income was higher than estimated or your family situation changed, you may have received too much credit and must repay the excess on Schedule 2, line 2. The repayment amount may be limited based on income.
Self-Employment Tax - Line 4
If you had net earnings from self-employment of $400 or more—whether as a freelancer, independent contractor, gig worker, or small business owner—you must pay self-employment tax, which covers Social Security and Medicare. Calculate this on Schedule SE; the 2022 rate is 15.3% (12.4% Social Security + 2.9% Medicare) on net self-employment income up to $147,000, plus 2.9% Medicare tax on all income above that threshold.
Household Employment Taxes - Line 9
You must pay household employment taxes if you paid cash wages of $2,400 or more in 2022 to any single household employee (nanny, housekeeper, caregiver, gardener), or if you withheld federal income tax from any household employee's wages, or if you paid total cash wages of $1,000 or more in any calendar quarter of 2021 or 2022 to all household employees. Use Schedule H to calculate; these taxes include the employer's share of Social Security and Medicare (7.65% of cash wages), federal unemployment tax (FUTA), and any withheld income tax.
Additional Medicare Tax - Line 11
High earners pay an additional 0.9% Medicare tax on wages and self-employment income exceeding $200,000 (single/head of household), $250,000 (married filing jointly), or $125,000 (married filing separately). This is calculated on Form 8959 and added to your regular Medicare tax. Unlike regular Medicare tax, there's no employer match—you pay the full 0.9%.
Net Investment Income Tax - Line 12
If your modified adjusted gross income exceeds $200,000 (single/head of household), $250,000 (married filing jointly), or $125,000 (married filing separately), you may owe a 3.8% tax on the lesser of your net investment income or the amount by which your modified AGI exceeds the threshold. Net investment income includes interest, dividends, capital gains, rental income, royalties, and passive business income. Calculate this on Form 8960.
IRA and Retirement Plan Penalties - Line 8
If you took money out of an IRA, 401(k), or other qualified retirement plan before age 59½ without qualifying for an exception, you generally owe a 10% additional tax on the taxable amount. There are exceptions for disability, certain medical expenses, first-time home purchases (up to $10,000), qualified education expenses, and others. If your Form 1099-R shows distribution code 1 in box 7 and you don't qualify for an exception, simply multiply the taxable amount by 0.10 and enter the result—you don't need to file Form 5329. For other situations involving retirement accounts (excess contributions, insufficient required minimum distributions), complete Form 5329.
Step-by-Step (High Level)
Step 1: Determine if you need Schedule 2.
Review the situations listed above under ""When You'd Use It."" If none apply, you don't need this form. If you're unsure about AMT, complete the AMT worksheet in the instructions before doing the full Form 6251.
Step 2: Gather your supporting documents.
Collect all relevant forms including 1099-R (retirement distributions), 1095-A (Marketplace health insurance), W-2 (wages—check box 12 for uncollected taxes), records of self-employment income and expenses, household employee wage records, and any forms showing investment income if you might owe Net Investment Income Tax.
Step 3: Complete required supporting forms first.
Schedule 2 is essentially a summary form—most lines require you to complete another form first, then transfer a total to Schedule 2. For example: complete Form 6251 for AMT (line 1), Form 8962 for premium tax credit repayment (line 2), Schedule SE for self-employment tax (line 4), Form 4137 for unreported tip income (line 5), Form 8919 for uncollected employee taxes (line 6), Form 5329 for retirement plan penalties (line 8), Schedule H for household employment taxes (line 9), Form 8959 for Additional Medicare Tax (line 11), and Form 8960 for Net Investment Income Tax (line 12).
Step 4: Fill out Part I of Schedule 2.
Enter your alternative minimum tax on line 1, excess advance premium tax credit repayment on line 2, and add these together for line 3. Transfer the line 3 amount to Form 1040/1040-SR line 17 or Form 1040-NR line 17.
Step 5: Fill out Part II of Schedule 2.
Enter applicable taxes on lines 4 through 16, working through each line that applies to your situation. For lines 17a through 17z, carefully review the detailed instructions for ""other additional taxes,"" which include dozens of specialized recaptures, penalties, and taxes. Most taxpayers will leave many of these lines blank.
Step 6: Calculate totals and transfer to main form.
Add lines 5 and 6 to get line 7. Add lines 17a through 17z to get line 18. Line 19 is reserved for future use (leave blank). Add lines 4, 7 through 16, 18, and 20 to get line 21. Transfer the line 21 amount to Form 1040/1040-SR line 23 or Form 1040-NR line 23b.
Step 7: Attach Schedule 2 to your return.
Place Schedule 2 and all supporting forms (6251, 8962, SE, 4137, 8919, 5329, H, 8959, 8960, etc.) behind your main Form 1040/1040-SR/1040-NR in attachment sequence order (Schedule 2 is attachment sequence number 02). If filing electronically, your tax software will attach everything automatically.
Common Mistakes and How to Avoid Them
Forgetting to file Schedule 2 entirely:
Many taxpayers don't realize they need this form, especially first-time self-employed individuals or people who took early retirement distributions. Always review the ""When You'd Use It"" section carefully. Tax software usually catches this, but paper filers must be vigilant.
Not reconciling premium tax credits:
If you received Form 1095-A from the Marketplace showing advance premium tax credit payments, you must complete Form 8962 and Schedule 2, line 2—even if it turns out you don't owe a repayment. Failing to do this can delay your refund and result in IRS notices. Don't wait for Form 1095-A; it should arrive by early March 2023, but you can contact the Marketplace if it doesn't.
Misunderstanding the 10% early distribution penalty:
Many people think all IRA withdrawals before age 59½ incur the penalty, missing exceptions like substantially equal periodic payments, qualified first-time homebuyer distributions, certain medical expenses, or disability. Review Form 5329 instructions to see if you qualify for an exception. Conversely, some people with distribution code 1 forget to report the penalty at all.
Calculating self-employment tax incorrectly:
The most common error is forgetting that self-employment tax is based on net earnings (profit), not gross receipts. You must complete Schedule C (or Schedule F for farming) first to determine net profit, then use that figure on Schedule SE. Another mistake is double-counting—if you're also a W-2 employee, the Social Security portion of self-employment tax only applies up to the combined wage and self-employment income cap ($147,000 for 2022).
Confusing household employment taxes with business expenses:
If you employ someone in your home for personal services (childcare, housekeeping), you must pay household employment taxes on Schedule H and report them on Schedule 2, line 9. You cannot treat the person as an independent contractor and issue a 1099-NEC just to avoid these taxes—the IRS has strict rules about worker classification. On the flip side, if the person works in your business (not your home), they're a business employee, not a household employee, and shouldn't be on Schedule H.
Missing the Additional Medicare Tax threshold:
High earners sometimes don't realize that even though their employer withholds the regular 1.45% Medicare tax, the additional 0.9% tax on high earnings isn't withheld unless your wages from a single employer exceed $200,000. If you're married filing jointly with combined income over $250,000 but each spouse earns under $200,000, neither employer withholds the extra tax—you must calculate and pay it via Form 8959 and Schedule 2, line 11.
Incorrectly attaching or sequencing forms:
Schedule 2 is the summary form—attach it, but also attach every supporting form (Form 6251, 8962, SE, H, 5329, 4137, 8919, 8959, 8960, etc.) in the proper sequence behind your main return. Missing a supporting form can delay processing or trigger an IRS inquiry.
Reporting on the wrong line:
Some taxpayers confuse where to report certain items. For example, regular income tax withholding from W-2 box 2 goes on Form 1040 line 25b (not on Schedule 2); excess Social Security tax withheld goes on Schedule 3, line 11 (not Schedule 2); and payments made with an extension request go on Schedule 3, line 10 (not Schedule 2). Schedule 2 is only for additional taxes you owe, not payments or withholding.
What Happens After You File
IRS processing:
The IRS will input your return information, including Schedule 2 and all supporting forms, into their system. Processing times vary—electronic returns typically process within 21 days if there are no issues, while paper returns can take 6-8 weeks or longer during busy periods. Schedule 2 doesn't inherently delay processing, but complex returns with multiple schedules may take longer to review.
Payment of additional taxes:
Any amount you owe from Schedule 2 (reported on Form 1040, line 23) must be paid by the April 18, 2023 deadline to avoid penalties and interest. If you can't pay in full, you can request an installment agreement online at IRS.gov or by filing Form 9465. Interest accrues on unpaid balances from the due date at the federal short-term rate plus 3 percentage points, compounded daily. Late payment penalties are typically 0.5% of the unpaid amount per month (up to 25% total).
Potential IRS notices or audits:
If the IRS identifies a discrepancy on Schedule 2—for example, they have information showing you took an early IRA distribution but didn't report the 10% penalty, or they received Form 1095-A showing you received premium tax credits but you didn't file Form 8962—they'll send a notice (often CP2000) proposing changes to your return. You'll have an opportunity to respond, agree to the changes, or dispute them with documentation. Some Schedule 2 items, like AMT calculations or self-employment tax computations, may also trigger examination if they appear unusual or inconsistent with your income.
Amended return requirements:
If you later discover you made an error on Schedule 2—forgot to report an additional tax, calculated something incorrectly, or left out a required form—you may need to file an amended return using Form 1040-X. The general rule is you must amend within three years of the original filing date or two years of paying the tax, whichever is later, to get a refund. If you owe additional tax, amend as soon as possible to minimize interest and penalties.
Record retention:
Keep copies of Schedule 2, all supporting forms (6251, 8962, SE, H, 5329, etc.), and all documentation (receipts, 1099 forms, 1095-A, W-2s, business expense records, household employee wage records) for at least three years from the date you filed your return or the date your return was due, whichever is later. The IRS recommends longer retention—up to seven years—for certain items like bad debt deductions or worthless securities. If you don't report income that you should report and it's more than 25% of the gross income shown on your return, the IRS can go back six years.
Refund adjustments:
If you claimed credits or payments on other parts of your return but also owe additional taxes on Schedule 2, the IRS will net everything together. Your refund (if any) will be reduced by Schedule 2 taxes, or you'll owe the difference. Make sure you account for Schedule 2 taxes when calculating whether you'll get a refund or owe a payment—many taxpayers are surprised when their expected refund shrinks because of additional taxes they didn't anticipate.
FAQs
Do I need Schedule 2 if I only have W-2 income and no other tax complications?
Most likely not. Schedule 2 is for additional taxes beyond standard income tax. If you only have wages from an employer (W-2), take the standard deduction, have no retirement plan distributions or Marketplace health insurance, don't run a side business, and aren't a high earner subject to Additional Medicare or Net Investment taxes, you probably won't need this form. Your tax software or a review of the ""When You'd Use It"" section will confirm.
What's the difference between Schedule 2 and Schedule 3?
This confuses many people. Schedule 2 reports additional taxes you owe (like AMT, self-employment tax, retirement plan penalties), while Schedule 3 reports additional credits and payments you've made (like foreign tax credit, education credits, estimated tax payments). Think of Schedule 2 as increasing what you owe, and Schedule 3 as decreasing it. Both attach to Form 1040, but they serve opposite purposes.
If I received health insurance through the Marketplace but my income didn't change from what I estimated, do I still need Schedule 2?
Yes, you must still complete Form 8962 to reconcile your advance premium tax credits with your actual credit, even if they match perfectly and you don't owe a repayment. However, if the reconciliation shows you don't need to repay anything (line 29 of Form 8962 is zero), you wouldn't enter anything on Schedule 2, line 2, but you still must attach Form 8962 to your return.
I took money out of my IRA early but used it for qualified education expenses—do I still report it on Schedule 2?
It depends. If your early distribution qualifies for an exception to the 10% penalty (like qualified higher education expenses), you must still file Form 5329 to claim the exception, but you won't owe the additional tax, so nothing goes on Schedule 2, line 8. However, you still must report the distribution as taxable income on Form 1040, lines 4a and 4b. The exception only eliminates the 10% penalty, not the income tax on the distribution.
I'm self-employed and already paid quarterly estimated taxes—why do I still need to calculate self-employment tax on Schedule 2?
Estimated tax payments are just advance payments toward your total tax liability; they don't change the actual taxes you owe. You must complete Schedule SE to calculate your self-employment tax (Social Security and Medicare) on your business profit and report it on Schedule 2, line 4. Then on your main Form 1040, you'll report your estimated tax payments on line 26, which are credited against your total tax (which includes the self-employment tax). If you paid enough estimated tax, you'll get a refund; if not, you'll owe the difference.
What happens if my employer treated me as an independent contractor but I think I should be an employee?
This is a common situation in the gig economy and certain industries. If your employer didn't withhold Social Security and Medicare taxes but you believe you meet the IRS definition of an employee (they control when, where, and how you work), you can use Form 8919 to calculate the employee's share of Social Security and Medicare taxes and report it on Schedule 2, line 6. The employer would be responsible for their share, plus potential penalties. You may also need to file Form SS-8 to request an official IRS determination of your worker status.
I hired a college student to babysit occasionally and paid cash—do I really need to deal with household employment taxes?
If you paid the student $2,400 or more in cash during 2022, yes, you must file Schedule H and report household employment taxes on Schedule 2, line 9. It doesn't matter that it was occasional or part-time—the threshold is based on total annual wages. However, if the student was under age 18 and wasn't primarily engaged in household employment as their main occupation (they're a full-time student), you generally don't owe Social Security and Medicare taxes, but you should still review Schedule H instructions to be sure. Many families miss this requirement and face penalties later.
Sources
All information in this summary comes from official IRS sources: Form 1040 (SP) Schedule 2 (2022), Instructions for Form 1040 (2022), and Instrucciones para el Formulario 1040(SP) (2022).
