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.
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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.
The additional income tax withholding will be applied against the taxes shown on your tax return, including any Additional Medicare Tax liability. The tax gets reported on Form 8959.
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