I am head of household and my employer withheld $10,157 for Medicare. TurboTax Deluxe is calculating I need another $2,779 but that doesn't make sense. Based on my filing status (Head of Household) and the math provided by TurboTax and other instructions for Form 8959, my employer's $10,157 already includes the 1.45% on the first $200,000 + another 2.35% (=1.45% + 0.9%) on the additional $308,813 Medicare wages. In this case, why would I pay another $2,779 which is another 0.9% on the $308,813?
My math:
Total Medicare Wages = $508,813
Head of Household = $200,000
Regular medicare withholding = 1.45% * $200,000 = $2,900
Additional medicare withholding = (1.45% + 0.9%) * $308,813 = $7,257
Total medicare withholding = $10,157 (which is what my employer already withheld, shown in W2).
Or, Regular medicare withholding + additional withholding = (1.45% * $508,813) + (0.9% * $308,813) = $7338 + $2779 = $10,157 (which is what my employer already withheld).
TurboTax math:
Total Medicare Wages = $508,813
Head of Household = $200,000
Additional medicare withholding on the additional portion above Head of Household = 0.9% * $308,813 = $2,779
Total medicare withheld = $10,157 + $2,779 = $12,936.
