Well, I spent quite a while on the phone with the IRS and they were very clear:
The only way to document and get credit for an overwithheld Medicare tax situation was to file Form 8959. This applies regardless of income. I also asked about getting the refund from the employer, and they advised that employers were not even allowed to do this.
The instructions state this form is required if you make more than the stated amounts. However, it does not state that it is not required for earning less than that amount. It also does not state anything about recovering overages from the employer. Further, I am unable to find any documentation on
IRS.govsupporting the position that the IRS requires you to work with your employer for the refund. To the contrary and per the instructions on Form 8959:
“You can't ask your employer to stop Additional Medicare Tax withholding if it is required to withhold it. If you don't owe Additional Medicare Tax, you can claim a credit for any withheld Additional Medicare Tax against the total tax liability shown on your tax return by filing Form 8959.”
All of this is also confirmed by my employer’s tax attorney.
So bottom line for me is simple:
The IRS phone support people, the Form 8959 instructions, and my (major corporation) tax attorneys are all quite clear on this topic.
BUT, if you have current evidence this is all wrong, I would like to know who in the IRS I cam contact to refute.
I know tax code and rules are “too complex for us mere mortals”, but my research all disagrees with the TurboTax handling of this issue.
