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Level 3
March 30, 2020
Question

In form 843, can I ask for a refund of medicare tax that also got factored into form 8959?

  • March 30, 2020
  • 7 replies
  • 34 views

I am a university student, and the university withheld social security and medicaid taxes by mistake in my W2 (as a student, I should have been exempt). I saw that TT does not handle form 843, so I will mail it after I file my return because the university is not able to give me a refund or correct the W2.

 

Since I file jointly with my wife, the medicaid wages on the W2 Box 5 get added to form 8959. So I have to pay additional medicare tax on these wages, even though I should have been exempt. When I submit form 843 to ask for a refund of the medicare tax shown on the W2 that was withheld in error, can I also ask for a refund of this additional medicare tax that got added into form 8959 (and would not have been factored in had the W2 withholding been done correctly)?

 

7 replies

Level 15
March 30, 2020

No.  Unfortunately, you can't use Form 843 -- you'll need to use Form 1040-X, Amended U.S. Individual Income Tax Return, to correct the amount computed on Form 8959. 

Please see Do not use Form 843 when you must use a different tax form in the Instructions for Form 843 for more information.

Please see the TurboTax Help article "How to amend (change or correct) a return you already filed" for instruction on how to amend your previously-filed tax return.

joeman22Author
Level 3
March 30, 2020

Thank you for your help! I was wondering how to amend my return if the university said they cannot issue a corrected W2 and whether that would be a problem with amending the 8959? Due to an administrative issue, half of my W2 wages show up in Boxes 5-6 and were subjected to medicare tax. This was an error though and I should have been fully exempt, but the university said they cannot refund me that tax money and cannot issue a corrected W2. They did give me a letter of support that I could use. So to claim the 8959 adjustment by filing an amended 1040X, would I just explain what happened and say that had the W2 been done properly, there would not have been an amount that got factored into the 8959 and that is the amount I am seeking to amend, but that I cannot get an official corrected W2? Or how should I proceed?

DMarkM1
Level 15
March 31, 2020

What you describe here will work. Complete 1040X that corrects the 8959 with an explanation of the changes and include the supporting documents from the employer.  

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