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February 23, 2025
Question

Alternative Medicare Tax but NOT high income

  • February 23, 2025
  • 1 reply
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Our joint filing income is definitely below $250,000, but Turbotax says it wants us to pay $15 in additional Medicare tax. Why? How to stop this?

    1 reply

    JohnB5677
    February 23, 2025

    Let's review your Schedule 2 (Additional Taxes) and your Tax Return (Form 1040).

     

    From the left sidebar

    1. Select Tax tools
    2. Hint: You may have to minimize the Federal and State selections
    3. Click Tools
    4. A Menu will pop up
    5. Select View tax summary
    6. On the left panel click Preview my 1040

    Once you see your 1040

    1. Scroll down
    2. You will go past your 1040 and see the Schedules.
    3. Scroll to Schedule 2
    4. Line 11 is Additional Medicare Tax. Attach Form 8959
    5. Check to see if the additional charge is posted

    This amount (And any other additional taxes) is posted to Line 23 of your 1040

    Also check the number posted to Line 9 of the 1040

    Is this greater than $250,000?

     

     

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    pauldawaAuthor
    February 23, 2025

    Income on 1040 is below 250K, but the line 11 on the schedule says 15. So that's a mystery to me.

    pauldawaAuthor
    February 23, 2025

    I should add that although line 23 of the 1040 is under $250,000, if I go back to the two W-2's and add up the Medicare wages, the income of us both added up to just over $250,000. So I suppose that's the explanation.