Incorrect Medicare Tax calculation for 'married filing jointly'

[vi1975]

My employer considered 'single filer' for calculating 'Medicare tax withhold' box 6 in W2. This means that it has considered both 1.45% for entire box5 amount and then 0.9% for anything above $200K.  But when I use TurboTax Premier to file 'married filing jointly' option, it is expected to consider $250K for applying 0.9% of the total for all W2 box5. I see that, TurboTax is not reviewing the amounts and then apply the correct calculation to arrive at Medicare tax. In my situation, I have already overpaid the Medicare Tax. However, TurboTax is making me to double pay the Medicare Tax. How do I correct this? Has TurboTax completely miscalculating this for all filers? 

[Mike9241]

 look at Form 8959

The total additional medicare tax is shown in Part IV line 18, and is carried to Schedule 2 line 11. The total on this schedule carries to the 1040 line 23.

The additional Medicare tax withheld (above the 1.45% on Medicare wages) is computed in Part V, line 24. and is added to the withholding section of the 1040 line 25c

TurboTax is correctly calculating the extra tax and extra withholding in my desktop deluxe app

[vi1975]

I am filing online. Until I complete the filing, I dont know how to see all different forms like 8959 and lines etc. I observed the calculation problem, when I started reviewing the tax that I owe. Then with my reading at Topic no. 751, Social Security and Medicare withholding rates | Internal Revenue Service, it gave me input on how employer is calculating. My employer is following what IRS mandated and reported in W2, as it was expected to calculate without considering filing status (in my case, Married filing jointly). This is where I am expecting TurboTax to handle the filing calculations by considering the threshold mentioned here, Questions and answers for the Additional Medicare Tax | Internal Revenue Service. I see that TurboTax premier online version is increasing my Medicare tax by whooping 18%. This is wrong. So, I want to know how to get this corrected in online version. 

[DianeW777]

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions:  (Don't forget to give us the state)

TurboTax Online:

Open your return -Go to the menu panel on the left side of your return and select Tax Tools. 

1. Then select Tools below Tax Tools.
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent.
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
5. Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.

TurboTax Desktop:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax Desktop for Windows
2. Select 'Send Tax File to Agent'* > Follow the prompts to reach the token number.
   • Enter your email used for TurboTax > Enter your code > Send
3. Write down or send an image of your token number and state then place in this issue.
4. We can then review your exact scenario for a solution.
5. Please also tell us any states included in the return. This is necessary for us to view the return.
   • *If using a MAC, go to the menu at the top of the screen, select Help, then, 'Send Tax File to Agent')

We will be able to see exactly what you are seeing and we can determine what exactly is going on in your return to provide you with a resolution.

@vi1975 

[gt97grad]

We noticed the same issue. Turbo tax need to correct this for married high income over 250K!

[gt97grad]

Vi1975 were you able to fix this issue for TurboTax online?

[BillM223]

As Mike noted above, there is a Part V on form 8959. This part calculates what the withholding for Medicare should have been. 

If it turns out that there was over withholding between you and your spouse, then the excess is applied to line 25c on form 1040. That is, the over withholding is just applied to your income tax, so you are not out anything.

[user17757193329]

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