We had too much Medicare tax withheld and TT calculates it correctly on Line 24 of Form 8959 but it doesn't pass through to Line 16 of my 1040. Why not?

[classicrockguy]

Hmm. What does “guide users” mean? It’s only a solution if it provides a path to TurboTax including Form 8959 in the return for people in the unique circumstance of having too much Medicare Tax withheld AND being under the income threshold. 

[Martin K]

True that Turbotax will not carry the number on Form 8959 to the right place on the 1040 tax payment worksheet.  But I have found the the easiest way to do this is in two steps:  File electronically with the overwithholding and make sure the refund or payment is completed.  Once the return is thus accepted ,file an amended return with the Form 8959.  The advantage is the the paper amended return is just three sheets: 1040 X (2 pages) and the 8959.   You may not want to do this if the difference is very large - mine wasn't. 

[Robert77]

It is now 11 months later, I have purchased TurboTax once more, and once again disappointed to find that this bug has still not been corrected.

C'mon Intuit, this is not a difficult fix to implement!!!  In the 2020 forms it is just a matter of carrying the amount on F8959 Line 14 to 1040 / 1040SR Wks Line 25c.

Pretty please?

[Robert77]

Thanks for posting an easier workaround.  If Intuit still doesn't correct this at least I can send in a smaller pile of paper to get my excess Medicare back.

[DexterCanine]

Here's what this mere mortal found on the IRS web site.  Seems to me the excess payment should be treated as a credit against taxes owed and not an additional tax as is currently done.  

From 26 CFR Parts 1 & 31.

§31.6402(a)–2 Credit or refund of tax under Federal Insurance Contributions Act or Railroad Retirement Tax Act.

(3) Additional Medicare Tax. (i) If more than the correct amount of Additional Medicare Tax under section 3101(b)(2) or section 3201(a) (as calculated under section 3101(b)(2)), is collected by an employer from an employee and paid to the IRS, the employee may file a claim for refund of the overpayment and receive a refund or credit if the overcollection cannot be corrected under §31.3503–1 and if the employee has not received repayment or reimbursement from the employer in the context of an interest-free adjustment. The claim for refund shall be made on Form 1040, U.S. Individual Income Tax Return, by taking the overcollection into account in claiming a credit against, or refund of, tax. 

[DexterCanine]

And on my return, i verified that TT did "carry the amount on F8959 Line 14 to 1040 / 1040SR Wks Line 25c."

Seems to be fixed.  

DC

[Crazianne]

TT has not fixed this issue. I had excess Medicare taxes withheld and was correctly calculated on F8959, summarized on line 24. TT did not carry this amount to line 25c of my form 1040. Instead, TT auto-populated line 25c with a negative $4536 (yes, that is a -$4536)! This ultimately means TT calculated my tax liability to be overstated by this amount! Unfortunately, I did not catch this until after I e-filed and the IRS accepted my forms. I now have to file an amended return. I called TT but was on hold for over 2 hours, so I gave up...not that they could do anything for me specifically anyways. 

It's misleading because TT always does a "verification" at the end of the online process to make sure everything is correctly filled out. This was a costly mistake and I'm now paranoid that this same auto-mistake has been done in past filings and will have to spend time reviewing previous years tax returns. Thank you TT for a job not well done. Just fix your program already!