Additional Medicare Tax MFJ

[AKM1997]

I hit the $200K threshold in Q4 and my employer begins taking out the additional 0.9% Medicare tax from my wages, so by the end of the year, I've paid in a total of an additional $250 to the additional Medicare tax liability.  I am a W-2 employee. 

My husband (also a W-2 employee) makes less than I do, but combined we have Medicare wages of $336K, so exceed the $250K Medicare threshold where we owe according to both TurboTax and my spreadsheet that I keep during the year to estimate tax liability both agree on the incremental Medicare Tax in the amount of $775.  I withhold extra each paycheck to account for the pay differential between my husband and I so we track our tax liability very closely.

Since I have already paid in $250 during the year through my employer withholding, shouldn't we only owe the incremental $525?  TurboTax is trying to force the entire $775 as tax owed NOW and ignoring the withholding that has already occurred through my W-2 during 2023 (which was downloaded into TurboTax).

Thank you.

[AmyC]

The amount withheld at work is in your w2 as tax withheld. It is going on your tax return as taxes already paid. The form you are filing must show the full amount of tax liability for the year. You are getting credit for what was paid at work. You can't subtract it twice, from tax liability and the additional tax.