2019 Schedule 2 (Form 1040/1040-SR): Additional Taxes Checklist
Unique 2019 Attributes
Schedule 2 in 2019 consolidates the reporting of alternative minimum tax, premium tax credit reconciliation, self-employment tax, household employment taxes, and other specialized taxes into a single attachment to Form 1040 or Form 1040-SR. The 2018 Schedules 2 and 4 have been merged into a single 2019 Schedule 2. Health insurance shared responsibility payments (ACA mandate penalties) were eliminated starting in 2019 under the Tax Cuts and Jobs Act, thereby removing a prior reporting requirement. Form 1040-SR debuted in 2019 for taxpayers age 65 or older, using identical Schedule 2.
2019 Year-Specific Programs Applicable to This Form
No Economic Impact Payments (EIP) reconciliation appears on the 2019 Schedule 2, as stimulus payments began in 2020. Premium tax credit reconciliation via Form 8962 remains required for taxpayers who received advance payments through the Health Insurance Marketplace in 2019. Section 965 net tax liability installment from Form 965-A applies if you have repatriation amounts from the Tax Cuts and Jobs Act.
Ten-Step Filing Checklist
Step 1: Determine Part I Applicability
If you owe alternative minimum tax (AMT), complete Form 6251 and enter the result on Schedule 2, line 1. If you received an advance premium tax credit (APTC) for 2019 health coverage through the Marketplace, complete Form 8962 and enter the excess repayment amount (if any) on line 2. Line 3 is the sum of lines 1 and 2, which is transferred to Form 1040 or Form 1040-SR, line 12b.
Step 2: Verify Self-Employment Tax Threshold
Suppose you had net earnings from self-employment of at least $400 in 2019, complete Schedule SE. Attach Schedule SE to your return and enter the self-employment tax amount on Schedule 2 line 4. Self-employment income below $400 does not require the filing of Schedule SE.
Step 3: Report Unreported Tip Income and Social Security/Medicare Taxes
If you failed to report tip income to your employer that totaled $20 or more in any month of 2019, complete Form 4137. Suppose you were misclassified as an independent contractor when you were an employee—complete Form 8919. Enter combined totals from both forms on Schedule 2, line 5.
Step 4: Identify Retirement Account Excess Distributions and Contributions
If you received early distributions from an IRA or other qualified retirement plan before age 59½ (or without a qualifying exception), or if you contributed excess amounts to traditional IRAs, Roth IRAs, Coverdell ESAs, or Health Savings Accounts in 2019, complete Form 5329. Attach Form 5329 if required. Enter total additional tax on Schedule 2 line 6.
Step 5: Report Household Employment Taxes
If you paid cash wages totaling $2,100 or more in 2019 to any household employee (nanny, housekeeper, etc.) and federal payroll taxes were not withheld, complete Schedule H. Attach Schedule H to your return and enter total household employment taxes on Schedule 2, line 7a.
Step 6: Calculate First-Time Homebuyer Credit Repayment
If you claimed the first-time homebuyer credit before 2019 and the home was disposed of or ceased being your principal residence in 2019, you must repay a portion of the credit. Complete Form 5405 and attach it. Enter the repayment amount on Schedule 2 line 7b. Note: 2024 is the final year for this repayment obligation.
Step 7: Report Additional Medicare Tax
If your total Medicare wages exceeded $200,000 (single) or $250,000 (married filing jointly) in 2019, or if you have self-employment income that, combined with wages, exceeds these thresholds, complete Form 8959. Attach Form 8959 and enter the Additional Medicare Tax on Schedule 2, line 8a.
Step 8: Report Net Investment Income Tax
Suppose you had net investment income and modified adjusted gross income exceeding $200,000 (single) or $250,000 (married filing jointly) in 2019, complete Form 8960. Attach Form 8960 and enter the Net Investment Income Tax on Schedule 2 line 8b. Investment income encompasses interest, dividends, capital gains, and certain types of rental income.
Step 9: Report Section 965 Net Tax Liability
If you have a remaining installment payment due from the one-time repatriation tax on foreign earnings under Section 965 (Tax Cuts and Jobs Act), complete Form 965-A showing your net 965 tax liability. Attach Form 965-A and enter the installment amount on Schedule 2, line 9. This applies only if you made an election under Section 965 in prior years.
Step 10: Assemble and Attach Schedule 2
Total all Part II taxes (lines 4 through 8) on line 10. Attach completed Schedule 2 to Form 1040 or Form 1040-SR with all required supporting forms (Schedules SE and H, Forms 4137, 5329, 5405, 6251, 8962, 8959, 8960, and 965-A as applicable). Enter line 10 total on Form 1040 or Form 1040-SR line 15. Sign and date the main Form 1040 or 1040-SR. See the IRS Where to File page for current mailing instructions for 2019 returns.
2019 Form Changes: Consolidation and Zeroing
Line and Section Redesign
Alternative Minimum Tax reporting: 2018 treatment: Reported on Schedule 2 (2018).
2019 treatment: Reported on Schedule 2 Part I line 1 (2019). Change type: Consolidated.
Additional taxes (household employment, self-employment, retirement penalties):
2018 treatment: Reported on Schedule 4 (2018).
2019 treatment: Consolidated into Schedule 2 Part II lines 4–9 (2019). Change type: Merged.
Health insurance shared responsibility payment:
2018 treatment: Required if no minimum essential coverage; reported on Schedule 4.
2019 treatment: Zeroed to $0 under TCJA; Form 8965 no longer filed for 2019 and later. Change type: Removed.
Premium tax credit reconciliation:
2018 treatment: Form 8962 attached to Form 1040.
2019 treatment: Form 8962 attached to Schedule 2 line 2 for excess repayment only. Change type: Clarified.
Explicit 2019 Instruction Change
Prior to 2019, taxpayers completed separate Schedule 2 (for AMT) and Schedule 4 (for other taxes). The 2019 redesign combined these into a single Schedule 2, divided into Part I (AMT and premium credit repayment) and Part II (all other additional taxes). This reduced form clutter and aligned with the IRS’s broader 2019 Form 1040 redesign, which moved from six numbered schedules to three.
Form-Specific Limitations
Schedule 2 applies to all U.S. residents filing Form 1040 or Form 1040-SR for the 2019 tax year. Nonresident aliens use Form 1040-N, which includes an additional tax return. Credits or deductions cannot be claimed directly on Schedule 2; it is an attachment for use in further calculations only. The schedule does not have any income limits, phase-outs, or rules based on your filing status; those rules are found in the related forms (like Form 5329, Form 8962, and Schedule SE).
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
