I have a tax amount for "Additional Medicare Tax" that is 7% of my income. Does this seem right?

[jenniandxie]

I understand that there is an additional 0.9% tacked on to incomes above $200,000, or $250,000 for married couples, but I have an additional 7% listed under "Additional Medicare Tax". What is going on?

[BillM223]

7% of your AGI or 7% of your gross income? No, this sounds odd. What else can you tell us?

[jenniandxie]

Figured out the problem! There was an extra digit for Medicare Taxable Income on a W2. Wow, that was close.

[BillM223]

I would have thought that TurboTax would have flagged this on the screen immediately after you entered that W-2. My tests get flagged all the time if I am not mathematically exact with the SS and Medicare withholdings.

Still, as Shakespeare said, "All's Well That Ends Well." That's true especially in taxation.