Medicare Tax

tpwyu · ‎September 20, 2018

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?

Stinkerbellkity · ‎September 27, 2018

The program taxes your income based on the filing status in your return. Whatever is withheld during the year is subtracted from the calculated tax on your overall return, to arrive at what is due or refunded.

knowmoretax · ‎September 27, 2018

Hello tpwyu,

The Medicare taxes will be adjusted on form 8959. If you paid too much medicare tax throughout the year the excess will be applied to your taxes withheld (Line 64 on form 1040 for 2017).

If you had not paid enough Medicare taxes on your wages or self-employment income during the year - the shortage would also be adjusted on form 8959 as an additional tax (on line 62 on form 1040 for 2017).

I hope this Answers your question,

Jack

Medicare Tax

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