I am in a similar situation. I understand some people divide W2 income from each spouse between the two separate returns such that each spouse enters one-half of the W2s on each of their returns. This would results in less than the $125,000 threshold if we took this approach (as opposed to using form 8958 to make our adjustments). Is this proper and in accordance with the Code? Stated another way, if the form 8959 was generated after accounting for the community property adjustment, there would not be any additional Medicare tax owed. Is this an error in the TurboTax system or consistent with the tax code?
