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March 11, 2023
Question

Additional Medicare Tax?

  • March 11, 2023
  • 1 reply
  • 0 views

I believe TurboTax is applying additional Medicare tax to my income in error. On top of that, it is now trying to charge me to upgrade in order to file with the form required to pay this tax that I don't think I even owe. 

 

I am married filing joint, total wages and tips is $222,818, split $112k and $110k. From what I can tell, I should only owe additional Medicare tax if we made $250 combined. These are the numbers that TurboTax shows when I look at the summary of our wages and tips.

 

Help!!

1 reply

Employee
March 11, 2023

Tips are subject to Additional Medicare Tax withholding, if, in combination with other wages paid by the employer, they exceed the $200,000 withholding threshold.