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tpwyu
Returning Member

If I am overtaxed on my Medicare tax, does Turbotax provide a correction for this when I file my taxes, or is there a way this is corrected during my filing?

For Married Filing Jointly (MFJ), the Medicare tax is 1.45% up to $250k income and then after that it adds another 0.9%.  Speaking with our payroll company, they said I am taxed as a "single" where it is 1.45% up to $200k and then an additional 0.9% thereafter.  Our payroll company says all payrolls are taxed this way for medicare regardless of what is claimed on the W4 or the filing status, and they cannot adjust or correct it, it is up to the filer during the filing process.  The $50k difference is $450, if I file MFJ, but I am taxed as a Single.  Does Turbotax provide a correction for this when I file my taxes, or is there a way this is corrected during my filing?


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2 Replies
rjs
Level 15
Level 15

If I am overtaxed on my Medicare tax, does Turbotax provide a correction for this when I file my taxes, or is there a way this is corrected during my filing?

Yes, TurboTax will automatically correct the excess Medicare withholding on your tax return. It will include Form 8959 in your tax return to calculate the correct amount of Additional Medicare Tax that you have to pay, and include that in your total tax. The full amount of Additional Medicare Tax that was withheld from your pay will be added to your federal income tax withheld. The result is that you will pay only the correct amount, and the excess $450 that was withheld will be credited towards your income tax. This is how the IRS requires it to be handled.

If I am overtaxed on my Medicare tax, does Turbotax provide a correction for this when I file my taxes, or is there a way this is corrected during my filing?

And see this IRS website for the Additional Medicare Tax - <a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/questions-and-answers-for-the-addition...>

"If my employer withholds Additional Medicare Tax from my wages in excess of $200,000, but I won't owe the tax because my spouse and I file a joint return and we won't meet the $250,000 threshold for joint filers, can I ask my employer to stop withholding Additional Medicare Tax?
No. Your employer must withhold Additional Medicare Tax on wages it pays to you in excess of $200,000 in a calendar year. Your employer cannot honor a request to cease withholding Additional Medicare Tax if it is required to withhold it. You will claim credit for any withheld Additional Medicare Tax against the total tax liability shown on your individual income tax return (Form 1040)."
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