Why no Medicare tax form 8959

Forum|Forum|1 year ago
April 13, 2024
2 replies
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Employer withheld the 0.9% Additional Medicare Tax, but wages do NOT exceed the threshold for our filing status. I believe Turbotax detected the excess tax because it asked me to verify the Medicare wage and tax figures, so why didn't it generate a form 8959?

Best answer by Vanessa A

You can give the phone people a call to see if they can give you some help with finding a workaround to correct the problem. You can do this at 800-4INTUIT.

I was able to reproduce your issue and what is happening is that the form is being populated in the background and using the desktop program, the form can be searched for in forms mode and viewed. The numbers on form 8595 are accurate but the form is not linking to the form 1040. We have sent this to be investigated further, but there would not be any fix that is released for this filing season.

SamhomeAuthor

I am pretty confident this is a software bug. Tested with imported W2s, and got no prompt to verify info and no 8959. Tested manually entered W2s, and got prompted to verify medicare figures, but got no 8959. Interestingly, went back and added $500 to the medicare tax withheld and got no prompt to verify, and still no 8959. Tested with both sets of W2 figures combined on one fake manually entered W2, and the 8959 generated successfully, but that would not stand up to an IRS electronic audit. Humph. Now I can't get Turbo to generate a 1040X for me to get back the extra funds because none of my figures have actually changed! Double humph.

Vanessa AAnswer

You can give the phone people a call to see if they can give you some help with finding a workaround to correct the problem. You can do this at 800-4INTUIT.

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SamhomeAuthor

Thanks for your reply. Given your comment about "in the background" I went looking harder in Turbo. I had been in forms mode many times, but I never expected the "open form" button would have any forms that contained my information unless they were included in the list of forms pertinent to my return. I wish I had seen that populated copy of 8959 in the back before I spent many hours researching the topic because I thought I must be making a mistake or missing something. At least now I feel validated, but I still have to generate and file a 1040X, and probably wait 6 or 9 months for the refund. I appreciate your explanation.

DianeW777

It seems like there may be a misconception about this form. Form 8959 is not used to refund any medicare tax that was withheld in excess by your employer. The employer is not paying the IRS excess medicare tax which means you may have to go back to the employer for reimbursement. Based on the employer tax reporting form (form 941) it's not possible to over pay.

Who should file Form 8959?

Beginning with the 2013 tax year, you have to file Form 8959 if the Medicare wages or RRTA reported exceed $200,000 for single filers or $250,000 for joint filers
If you have self-employment income, you file form 8959 if the sum of your self-employment earnings and wages or the RRTA compensation you receive is more than the threshold amount for your filing status.
- What is Form 8959: Additional Medicare Tax

If by chance you are referring to an excess of social security tax withheld and if you had two or more employers, then you are entitled to a credit. No form is used, it simply goes on your 1040, line 31, from Schedule 3, Part II, line 11.

@MB000

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SamhomeAuthor

DianeW777, your advice appears to differ from the IRS instructions for form 8959. The "Who Must File" paragraph begins: You must file Form 8959 if one or more of the following applies to you. •Your Medicare wages and tips on any single Form W-2 (box 5) are greater than $200,000 (followed by more reasons not of interest to me.)

I questioned my employer for withholding beginning at $200K when the threshold for owing the tax is $250K for MFJ, and they explained they are required to begin withholding at $200K for everyone because they cannot be certain you will still be married on 12/31 and file MFJ. Therefore, form 8959 is necessary to get credit for the excess Medicare tax withheld.

RobertB4444

Please clarify - the extra medicare tax that was withheld is definitely not appearing on your form 1040 schedule 3, Part II, Line 11, correct? because the TurboTax system should have entered it there and bypassed the 8959 altogether.

@Samhome

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