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.
