My employer paid the correct amount of medicare tax and additional medicare tax for me throughout 2023, as shown in the W-2. However, TurboTax is automatically adding an additional medicare tax to the sum total of "taxes owed", which means the additional medicare tax will be paid twice if I submit my TurboTax return. Please advise how to remove the Turbotax-added additional medicare tax amount from my filing/documentation before I submit this electronically to the IRS today.
Additional Medicare tax is a separate tax from the Medicare deducted through payroll. This tax, enacted in 2013 is 0.9% and added to tax returns showing earned income above the following thresholds:
Single, head of household, and qualifying surviving spouse $200,000
Married filing jointly $250,000
Married filing separately $125,000
For purposes of this tax "earned income" consists of wages, bonuses, tips, certain noncash fringe benefits, and net income from self-employment.
Not correct. Per the Form 8959 Instructions (https://www.irs.gov/instructions/i8959 :( "Your employer is responsible for withholding the 0.9% Additional Medicare Tax on your Medicare wages or RRTA compensation paid in excess of $200,000 in a calendar year. Your employer is required to begin withholding Additional Medicare Tax in the pay period in which your wages or compensation for the year exceed $200,000 and continue to withhold it in each pay period for the remainder of the calendar year."
My W2 Box 6 shows an amount of medicare tax paid that equals (1) 1.45% x the Box 5 medicare wages/tips plus (2) the 0.9% of the amount over $200,000
Here's an old note I have so the 1040 line #s will be different. Maybe it help.
If you have a lot of investments there is an extra Medicare tax on Schedule 2 line 8 which goes to 1040 line 15. That is offset with an extra amount on line 17 with withholding.