Medicare tax with holding

[SJ Er]

I completed our 2021 income tax filing using the Premier edition.

Filed as Married/joint return.

Subject is Medicare tax withholding and the 0.9% extra tax for the ACA for wages over $250,000.

My employer withheld the correct amount.

When calculating Federal income tax withheld (Line 25 on Form 1040 summary)...

* line 25a was my withholding from my W-2

* line 25b was withholdings from 1099 (IRA RMDs)

* line 25c (other forms) was an amount which came from the difference between my total Medicare tax withheld and the Medicare tax as calculated by 1.45% x my Medicare wages.  Presented as added taxes paid, used to calculate my refund.

So...my total taxes paid (25a-25c) and, thus, my refund was increased my the amount of Medicare tax above the 1.45% standard amount, which was the ACA tax for high wage earners.

The IRS caught this and I had to send data back and forth to the IRS to correct this.

So...It appears as if this edition of Turbo Tax incorrectly treats the ACA Medicare tax as "excess" taxes paid and increased the refund calculated.

Conclusion: just identifying what seems to be an error in the Turbo Tax calculator that other users may have also had to deal with?

[Mike9241]

the additional medicare tax and the excess medicare tax withheld are calculated on form 8959

the actual additional medicare tax is reported on line 11 of schedule 2 

while the excess withheld (the amount over 1.45% of box 5 on your w-2) is on line 25c

not sure which version you're using, but in Desktop Deluxe version the calculations and amounts reported on the forms are correct.  perhaps you filed when there was a bug in the app which has subsequently been corrected.

example

excess medicare wages($500K less $250 base for MFJ) $250K @.9% = $2,250 additional medicare tax owed line 11 schedule 2

w/h on $500K in medicare wages per w-2     $9500

$500K @ 1.45%                                                    $7250

excess w/h credit on line 25c                            $2250

[SJ Er]

Thanks for the answer.  Helpful!

SJ Er