Why is turbo tax forcing me to upgrade due to "you have additional medicare tax, form 8958)? I do not. How to I get around this or fix it?

[DoninGA]

Are you filing Single and are the Medicare wages in box 5 of your W-2 greater than $200,000 or filing Married Jointly and the total of all Medicare Wages in all of the W-2's greater than $250,000?

If not, then you need to check what you entered in the TurboTax program for box 5 of the W-2's.  You may have entered a misplaced decimal point or a comma instead of decimal point.

[DoninGA]

Note - The Additional Medicare Tax form is 8959.

[derion79]

Thanks for the quick reply.  I double checked the figures in Box 5 and it is below 200K.  I am filing single too.  Not sure what the hiccup is here. 

[DoninGA]

@derion79 Try deleting the W-2 and re-entering the W-2 manually.  That should clear any program glitch asking for the Form 8959.

[derion79]

Smart.  I will try that first thing in the morning and let you know.

[VolvoGirl]

Have you seen form 8959?  Check it over, maybe you have something else on it.

https://www.irs.gov/pub/irs-pdf/f8959.pdf 

[rjs]

Do you have more than one W-2, or do you have self-employment income (Schedule C) in addition to W-2 income? If the total Medicare wages (box 5) on all of your W-2s, plus net self-employment income, is more than $200,000, you have to file Form 8959, even if you don't actually owe any Additional Medicare Tax.

[derion79]

@DoninGA I deleted the W2 and entered the W2 info back manually, reconfirming that Box 5 is below 200K.  At the end, I still get the message that I need to complete form 8959 and upgrade to Deluxe.  Thoughts? 

[DoninGA]

@derion79 Do you have any other income such as Self-Employment income that you have reported on the return?

Look at your Form 1040 and Schedule 1 to see if other income is being reported.

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.

If you do not see income other than the W-2 that you have entered then it would be best to clear the tax return and start over.

Click on Tax Tools on the left side of the program screen while working on the 2022 online tax return. Click on Clear & Start Over.

[rjs]

@derion79 

There a few less-common situations that require filing Form 8959. We haven't mentioned them because they are unusual, but let's check.

• Do you have any RRTA (Railroad Retirement) compensation or tips in box 14 of your W-2, or perhaps a different entry in box 14 that was mistakenly categorized as Railroad Retirement? Check the box 14 entries in TurboTax.
• Do you have any unreported tip income on Form 4137?
• Do you have Form 8919 in your tax return (Uncollected Social Security and Medicare Tax on Wages)? You would have this form if you received pay that should have been reported on a W-2 but was not.

Also, please confirm all of the following.

• You have only one W-2. Only one W-2 is entered in TurboTax.
• You do not have any self-employment income or business income (Schedule C).
• Your filing status in TurboTax is Single.

[derion79]

@DoninGA   After previewing the 1040 I can confirm that there is no other income besides the one W2 I entered.  Paging down, I see a mysterious $408 in Line/Box 11 "Additional Medicare Tax. Attach Form 8959".  I have no idea why that is there or where it comes from.  So perhaps I am at the point of clearing and starting over...

[derion79]

Update:  For those running into the same problem, I have figured out the issue.  Because I am married filing separately, the threshold drops to 125k, down from the 200K for non-married singles.  So, the 200K didn't apply to my case like I thought, and therefore, I needed to upgrade to Deluxe to accommodate the additional 8959 form.  Hope that helps. 

[rjs]

June 24:

@derion79 wrote:

I am filing single too.

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June 30:

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@derion79 wrote:

I am married filing separately

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And on June 28 I asked you to confirm that your filing status is Single, but you did not respond.

We can't see your tax return. We have to rely on what you tell us.