@krismanteuffel wrote:
I appreciate your response but we are somewhere in the middle. The hospital did withhold Medicare but did not withhold Social Security for my husband. What should we do?
That can't be fixed in Turbotax and does need to be corrected by the hospital. Either the hospital should withhold both (on his wages, no tax is withheld on the housing allowance) or neither.
The closest you could come in Turbotax is to answer "both". Then you are paying 1.45% too much, because he had 1.45% withheld, and is paying the full 15.3% SECA. Turbotax does not have an option to split those taxes and I don't believe the IRS even offers such an option. He should ask for a refund from the hospital and a corrected W-2.
If the hospital refuses, he can request a refund of the 1.45% that was mistakenly withheld using form 843. This is a separate form not included with a regular tax return and not supported by Turbotax. Before filing a request for the refund, he will need a letter or email from the hospital in which they refuse to issue a refund. (Because the IRS won't approve a refund if they think the employer might also issue a refund.). You will need to include a letter that explains how he paid extra Medicare tax because he paid SECA and the hospital also incorrectly withheld the tax.
