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February 27, 2025
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An additional medicare tax added to my return asking to pay 0.9% of ( Box 5 - 250k). It is not accounting the portion in Box 6 that has Box5*1.45%+(Box5 - 200K)*0.9%

  • February 27, 2025
  • 1 reply
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Please let me know how to fix this issue?
    Best answer by ThomasM125

    The additional Medicare tax will appear on line 11 of Schedule 2 of your Form 1040, but the additional Medicare tax that your employer withheld from your pay will appear on line 25c of your form 1040, where it will be added to your tax withheld. So, the additional Medicare tax is offset by the additional tax above the 1.45% that your employer took from you, so it will even out on the Form 1040.

     

     

    To view your form 1040 and schedule 1 to 3:

     

    1. Choose Tax Tools from your left menu bar in TurboTax Online while working in your program
    2. Choose Tools
    3. Choose View Tax Summary
    4. See the Preview my 1040 option in the left menu bar and click on it
    5. Choose the Back option in the left menu bar when you are done 

    1 reply

    February 27, 2025

    The Additional Medicare Tax is charged separately from, and in addition to, the Medicare taxes you likely pay on most of your earnings.

     

    A 0.9% Additional Medicare tax applies to Medicare wages, self-employment income, and railroad retirement (RRTA) compensation that exceed the following threshold amounts based on filing status:

    • $250,000 for married filing jointly;
    • $125,000 for married filing separately; and
    • $200,000 for all other taxpayers.

     

    Instructions for Form 8959 (2024)
     

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    anandrk9Author
    February 27, 2025

    Turbo Tax is not accounting for the 0.9% deduction that employer has already deducted.

    February 27, 2025

    The additional Medicare tax will appear on line 11 of Schedule 2 of your Form 1040, but the additional Medicare tax that your employer withheld from your pay will appear on line 25c of your form 1040, where it will be added to your tax withheld. So, the additional Medicare tax is offset by the additional tax above the 1.45% that your employer took from you, so it will even out on the Form 1040.

     

     

    To view your form 1040 and schedule 1 to 3:

     

    1. Choose Tax Tools from your left menu bar in TurboTax Online while working in your program
    2. Choose Tools
    3. Choose View Tax Summary
    4. See the Preview my 1040 option in the left menu bar and click on it
    5. Choose the Back option in the left menu bar when you are done 
    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"