I DO NOT EVEN COME CLOSE TO MEETING INCOME THRESHOLD AND THEY WANT ME TO DO FOR 8959

[joyfuljoy2000]

sorry for the caps

[MaxA1]

You may be seeing this because the amount of Medicare taxes withheld in box 6 isn't exactly 1.45% of the Medicare wages in box 5, due to rounding.  If you remove any cents for ‌Medicare wages (Box 5), this may clear the need for Form 8959.

Double check your entries for your W2s. You could have a Box 6 withholding error or misplaced decimal point in Box 5 that may be triggering the form.

1. Go to Wages & Income and select Edit/Add next to your W-2.
2. Check Box 5 and Box 6 for every W-2 entered.
3. Ensure Box 6 is exactly 1.45% of Box 5. If it is off by a few cents (e.g., the W-2 shows $145.01 instead of $145.00), rounding it to the nearest dollar may remove the form requirement.

If the amount in Box 6 (Medicare tax withheld) is more than 1.45% of the amount in Box 5 (Medicare wages), TurboTax will generate Form 8959 to claim a refund of that overpayment. Even a discrepancy of $1 due to employer rounding can trigger this.

For more information on Form 8959, see What Is Form 8959: Additional Medicare Tax

[baldietax]

@MaxA1 is this a bug in TT being fixed to put some tolerance on triggering this form, or something deliberate, seems a lot of people are hitting it?

[CatinaT1]

@joyfuljoy2000  We would like to take a deeper dive into this issue to assist you.  In order to do this, it would be helpful to have a TurboTax ".tax2025" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions: Go to the black panel on the left side of your program and select Tax Tools.

1. Then select Tools below Tax Tools.
2. A window will pop up which says Tools Center.
3. On this screen, select Share my file with Agent.
4. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number.
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.

Here are the instructions if you are using TurboTax CD/Download:
 

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number then place in this issue.
4. We can then review your exact scenario for a solution.
5. Please also tell us any states included in the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

[Anonymous]

1323932
I rounded down the nearest cent and deleted the file to get the same error

[CatinaT1]

You are seeing this because the amount of Medicare taxes withheld in box 6 is not exactly 1.45% of the Medicare wages in box 5, due to rounding.

DoninGA found that if you remove any cents for the Medicare wages (Box 5), this will clear the need for Form 8959.

Double check your entries for your W2s. You could have a Box 6 withholding error or misplaced decimal point in Box 5 (e.g., entering $50,000.00 as $500,000) will trigger the form.

1. Go to Wages & Income and select Edit/Add next to your W-2.
2. Check Box 5 and Box 6 for every W-2 entered.
3. Ensure Box 6 is exactly 1.45% of Box 5. If it is off by a few cents (e.g., the W-2 shows $145.01 instead of $145.00), rounding it to the nearest dollar may remove the form requirement.

If the amount in Box 6 (Medicare tax withheld) is more than 1.45% of the amount in Box 5 (Medicare wages), TurboTax must generate Form 8959 to claim a refund of that overpayment. Even a discrepancy of $1 due to employer rounding can trigger this.

If your W2 entries are correct, delete the form:

1. Select Tax Tools from the left menu, then Tools.
2. Select Delete a form.
3. Find Form 8959 and click Delete.
4. Note: If the data in your W-2 still points to an overpayment, TurboTax will automatically re-generate the form during the final review.