I have run in to the same issue now with the preliminary tax year 2019 version of TurboTax Premier. I spoke with both the tax attorneys at my employer (major corporation), as well as called the IRS directly to talk with their "experts". Both confirm that IRS Form 8959 must be used to reconcile any over withheld Medicare taxes REGARDLESS OF INCOME LEVEL. If IRS Form 8959 Part V Line 24 reflects a value >0 (over withheld Medicare tax), it must flow to the TurboTax Tax Payment Summary form Line 18f, which in turn then flows to the IRS 1040 Form Line 17 as part of total taxes paid. In effect, the over withheld Medicare is credited as part of total taxes paid for the year. Further, IRS Form 8959 must be submitted to the IRS along with the rest of the tax return IF there is any credit in Part V, REGARDLESS OF INCOME LEVEL, which TurboTax does not do.
As mentioned in a another post, the only current workaround with TurboTax software is to override the value on the TurboTax Tax Payment Summary Line 18f, print all of the forms (including IRS Form 8959), and file the return manually. The IRS also advised that the return could be filed electronically without IRS Form 8959 in order to expedite any tax refund, but the taxpayer would have to then file a paper amended return later that includes IRS Form 8959. (This seems a bit messy to me.)
The BEST solution would be for the TurboTax folks to stop claiming the IRS is advising them otherwise, and fix this error!
