Form 8959 additional medicare tax form

[Tag104]

turbo tax is taking out an additional .009 medicare tax on her medicare wages when the addtional .009 was already deducted from her wages and properly reflected on her W-2.  We believe that there is an error in how the Form 8959 is calculating the tax. Can this form be deleted from the return so it does not add the additional $217 that has already been deducted from her wages?

Total medicare wages were $224,029. Medicare tax withheld was $3,464.67 on her W2, box 6.  

Turbo tax is calculating $224,029x .145 equals 3248. Then Turbo Tax calculates 24,029 x .009 equal $217. Then it takes $3465 (rounded) which is the correct amount in box 6 of the W2 and subtracts 3248 from it and add $217 of additional medicare tax on form 1040 Line 25C. 

This is the second calculating error we have found this year with turbo tax and really feel that Turbo Tax is falling short of their advertising mantra for 'filing with confidence that your return is correct.' 

[rjs]

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@Tag104 wrote:

. . . and add $217 of additional medicare tax on form 1040 Line 25C. 

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Form 1040 line 25c is not additional tax that she is paying. It's the Additional Medicare Tax that was withheld on her W-2. Putting it on Form 1040 line 25c is how she gets credit for the Additional Medicare Tax that was withheld. The amount on Form 1040 line 25c comes from Form 8959 line 24. It ends up getting subtracted from her total tax, not added.

I have attached below a PDF of what I think her Form 8959 should look like, based on the information you have provided, and assuming that she has no other W-2 and no other income subject to Medicare tax or self-employment tax. Schedule 2 line 11 should be $216 and Form 1040 line 25c should be $217. (The difference between $216 and $217 is due to rounding.) If this is what you have on her forms, the calculations are correct. If this is not what you have, what specific lines are different, and what are the amounts that TurboTax shows on those lines?

If you have additional questions about the calculations, please provide specific form and line numbers and amounts, not just "TurboTax calculates. . . ." Indicate the amount that TurboTax calculated, what you think it should be, and how you arrived at your amount. Also please tell us whether you are using TurboTax Online or the CD/Download TurboTax software.

Who is "her"? What is her filing status? It appears to be either Single, Head of Household, or Qualifying Widow.

[Tag104]

Thank you for your reply and the form example you sent me.  This is very helpful. The example you sent is exactly how Turbo tax shows the Form 8959 completed and the $217 additional medicare tax (that the employer already withheld on my sister's Form W-2) carried to Form 1040. She is filing single and no additional income other than her W2 wages. We will have to run the calculator on the numbers on page 2 of the 1040 to more fully understand that the $217 additional medicare tax is not being added to her tax liability.