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Level 6
September 24, 2026
Solved

Additional Medicare tax exclusion

I have a client, dual US-Israel citizen, working in Israel for a subsidiary of a US company.   He makes over $200k a year.

After researching this, I conclude that he is not subject to the Additional Medicare Tax (Form 8959).  I selected “Foreign affiliate of U.S. company” but it still generates a 8959.  How do I get Lacerte to not automatically add that form and assess tax?

Level 4
September 25, 2026

On Screen 31 Foreign Income Exclusion, in the left most column, select Foreign Wages
Change the Medicare Wages and Tips to $0
 

1 reply

Level 4
September 25, 2026

On Screen 31 Foreign Income Exclusion, in the left most column, select Foreign Wages
Change the Medicare Wages and Tips to $0