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.

[rjs]

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

[avalentin15]

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 · Accepted solution]

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.

[avalentin15]

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