My employer is required by the IRS to withhold the additional 0.9% because the income in question is part of a special compensation program for certain highly paid employees. Under normal circumstances, these are current employees who easily meet the minimums for the additional 0.9%. However, I am now retired but still receiving small annual residuals from this program for a few more years. As a retiree, I do not meet the payroll income thresholds for the additional 0.9%. I guess I am stuck with this “error” for a few more years.
So, 1) the company is not going to refund the excess to me directly and 2) advise I (and many others affected in this way) simply use Form 8959 to recover the excess per IRS rules. This has been the approach now for several years.
This brings me back to my original post (and other users posts) that TurboTax needs to fix this problem with how they are handling Form 8959. I should not be forced to choose between filing a paper return as a “workaround”, or paying a few hundred dollars in un-owed Medicare taxes for the privilege of e-filing the return with TurboTax.
