I earned above $200,000 so I was charged the .9 Additional Medicare Tax but overall married total was under $250,000. Why is form 8959 not being used for a credit?

[ajochums]

Total combined (husband and wife) wage is $242,307 with a credit due of $174 if I fill out form 8959 manually, but TurboTax online is not doing this.

[MinhT1]

In your case, TurboTax does calculate this credit in Part V, line 24 of form 8959. Line 24 is then transferred to line 25c of form 1040 - Federal Income tax withheld from other forms.

to preview your form 1040 in TurboTax Online, follow these steps:

1. Open your return
2. In the left-hand column, locate Tax Tools, click on the drop-down arrow then click on Tools
3. On the Tools Center page, click on View Tax Summary
4. In the left-hand column, click on Preview my 1040
5. Your form 1040 will display.
6. Scroll down to line 25c and you should see the amount of this deduction included in this line.

[DoninGA]

If the program created and completed a Form 8959, the amount would be a credit and reported on your Form 1040 Line 25c

Look at your Form 1040 -

You can view your Form 1040 plus Schedules 1, 2 and 3 at any time using the online editions. Click on Tax Tools on the left side of the online program screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

[ajochums]

I was able to figure this one out. I am stuck in a middle-area.  Mid-year, my employer changed payroll companies.  This means I received 2 separate W-2s.   The second payroll company kept track of cumulative annual pay and deducted the .9% Additional Medicare Tax as required.   However, because each of my separate W-2s does not exceed $200,000 individually nor when combined with my wife's salary do we exceed the $250,000 threshold then form 8959 is not automatically required.  Because it is not automatically required, the software will not fill it out for me.   If it did, the instructions for form 8959 require one to put combine all earnings from all W-2s togehter, which then when the form is completed shows that I am due a credit to enter into line 25c of my 1040.  So because I don't meet the requirements for needing to fill out form 8959, I don't get to fill it out and therefore I apprarently must forfeit $174 in Additional Medicare Tax I paid.