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avalentin15
Returning Member

Why is it telling me that I need to upgrade because I have "additional medicare tax (form 8959)? We earned less than 250k. This is the first time I've ever seen this.

 
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rjs
Level 15
Level 15

Why is it telling me that I need to upgrade because I have "additional medicare tax (form 8959)? We earned less than 250k. This is the first time I've ever seen this.

Yes, even if you are filing as married filing jointly. Because your wages were over $200,000, your employer had to withhold additional Medicare tax. But because you are filing as married filing jointly and your income was less than $250,000, you don't actually owe the additional Medicare tax. Filing Form 8959 will have the effect of paying you back for the additional tax that your employer was required to withhold by applying it against your income tax.

 

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rjs
Level 15
Level 15

Why is it telling me that I need to upgrade because I have "additional medicare tax (form 8959)? We earned less than 250k. This is the first time I've ever seen this.

If your Medicare wages (box 5) on any one W-2 are more than $200,000 you must file Form 8959.

 

avalentin15
Returning Member

Why is it telling me that I need to upgrade because I have "additional medicare tax (form 8959)? We earned less than 250k. This is the first time I've ever seen this.

Thanks for the reply. 

 

Even if it's filed as married filing jointly? On the IRS website it says the threshold amount is $250k for married filing jointly. 

rjs
Level 15
Level 15

Why is it telling me that I need to upgrade because I have "additional medicare tax (form 8959)? We earned less than 250k. This is the first time I've ever seen this.

Yes, even if you are filing as married filing jointly. Because your wages were over $200,000, your employer had to withhold additional Medicare tax. But because you are filing as married filing jointly and your income was less than $250,000, you don't actually owe the additional Medicare tax. Filing Form 8959 will have the effect of paying you back for the additional tax that your employer was required to withhold by applying it against your income tax.

 

View solution in original post

avalentin15
Returning Member

Why is it telling me that I need to upgrade because I have "additional medicare tax (form 8959)? We earned less than 250k. This is the first time I've ever seen this.

Thank you for clearing that up for me! Much appreciated. 

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