Can you explain why TurboTax requires me to upgrade to Deluxe for Additional Medicare Tax (Form 8959) if my income is below $200000 and I only have two standard W-2 forms

[CatinaT1]

You are seeing this because the amount of Medicare taxes withheld in box 6 is not exactly 1.45% of the Medicare wages in box 5, due to rounding.

DoninGA found that if you remove any cents for the Medicare wages (Box 5), this will clear the need for Form 8959.

Double check your entries for your W2s. You could have a Box 6 withholding error or misplaced decimal point in Box 5 (e.g., entering $50,000.00 as $500,000) will trigger the form.

1. Go to Wages & Income and select Edit/Add next to your W-2.
2. Check Box 5 and Box 6 for every W-2 entered.
3. Ensure Box 6 is exactly 1.45% of Box 5. If it is off by a few cents (e.g., the W-2 shows $145.01 instead of $145.00), rounding it to the nearest dollar may remove the form requirement.

If the amount in Box 6 (Medicare tax withheld) is more than 1.45% of the amount in Box 5 (Medicare wages), TurboTax must generate Form 8959 to claim a refund of that overpayment. Even a discrepancy of $1 due to employer rounding can trigger this.

[SteamTrain]

@CatinaT1   @DoninGA 

Was it the cents removed for box 5, or for box 6?

I thought it was box 6, so that the Medicare tax was slightly lower.

[DoninGA]

I suppose it could be either.  Just always used the method to reduce the amount in box 5.

[RGlass81]

I am having the same issue. I read all the suggestions and my numbers are under the minimum amount for Medicare wages, percentages are exact for wages and taxes, I didn't click I had a 1095A or an HSA, I have cleared and started over and and reentered manually. Still trying to get me to upgrade. I'm very frustrated. i do not have MEDICARE!