Form 2210 line 11 - do I include Additional Medicare Tax that was withheld from my paycheck?

[si29xnm]

Form 2210 (Underpayment of Estimated Tax by Individuals, Estates, and Trusts). I understand you generally treat tax withheld from your paycheck as having been withheld evenly throughout the year. But I also understand that you can use the actual amount held in Line 11 of Form 2210 by looking at my paystubs from 4/15/2011, 6/15/2011, 9/15/2011, and 1/15/2022 to see how much was actually withheld during each payment period.

On Form 2210 line 11 where you put the estimated tax paid and tax withheld for each quarter, do I include Additional Medicare tax withheld from my paychecks? It seems I should since 90% of current year tax liability include the Additional Medicare Tax, but the Form 2210 Instruction isn't clear on this point.

[MinhT1]

No. You do not include Medicare Tax or Additional Medicare tax on line 11 of form 2210.

Medicare tax is a separate tax from Federal tax and does not count as Federal tax withheld.

[si29xnm]

Then why does Form 2210 Part 1 make you include Additional Medicare Tax in calculating 90% of this year’s tax liability?

[BillM223]

First, did you actually pay Additional Medicare tax in 2021? Most taxpayers don't. Look at your return. Do you have a form 8959 attached to it? Do you have an amount on line 11 of Schedule 2 (1040)?

Second, the instructions for line 11 (2210) state:

"Estimated tax payments you made for the 2021 tax year, plus any federal income tax and excess social security and RRTA tax withheld."

Note that Medicare tax (excess or not) is not mentioned here, so for purposes of line 11, you can ignore the Medicare tax.

[si29xnm]

@BillM223  Yes, my 2021 return has Form 8959. And yes, Line 11 of Schedule 2 (1040) shows a few thousand dollars (the same amount as what's shown on Line 7 of Form 8959).

This seems bizarre (or rather unfair) to me. To avoid any tax underpayment penalty for tax year 2022, I need my 2022 paycheck withholdings + 1040-ES payments to be at least 110% of 2021's tax liability.  In calculating 2022's paycheck withholdings, Additional Medicare Tax is not included.  Yet, in calculating 110% of 2021's tax liability, the Additional Medicare Tax from 2021 (Line 11 of Schedule 2) is included.

[ssel]

OK, so I'm 2 years late...

I agree with OP that it only makes sense that Additional Medicare Tax Withholding be included on Form 2210 Line 11.  (Of course there's no guarantee that tax forms, regulations, or statutes will make sense.)  But since this is a TurboTax forum, it's instructive to see what TurboTax does.  For the 2023 tax year I can see that TurboTax does include it.  It's transferred from the bottom of Form 8959 to the Tax Payments Worksheet and from there to Form 2210 Line 11, and on Line 11 it's treated like income tax withholding -- by default as if it were paid in four equal quarterly payments.