Form 8959 taxpayer had excess medicare withholding but wages were under the limit, Lacerte is not allowing the Form 8959 to be efiled, but IRS instructions do not say From 8959 must be paper filed to claim the refund, so Why does Lacerte limit this?

Form 8959 instructions say that employers are required to withhold more than the 1.45% on wages over $200K.  However when taxpayers file MFJ the wage limit before the extra Medicate tax is assessed is $250K.  

My taxpayers situation:  One employer, but received two w2's, one was for reimbursed moving expenses.  Neither of the W2's is over the $200K amount. However one of the W2s shows withholding of more than the 1.45%, assuming that the employer thought that the 2 W2's together met their requirement to withhold the extra tax.  

Form 8959 is populating correctly within Lacerte, and shows that the taxpayer is due $183 refund for overwithheld Medicare tax.  But a critical diagnostic appears that will prevent efiling due to Lacerte ONLY reading that ONE W2 is NOT stating Medicare wages as over $200K. There is NOTHING in IRS regulations or the Form 8959 instructions that say if Form 8959 is being filed to report overwithhled Medicare tax that the return MUST be paper filed.  IN FACT, Form 8959 says just the opposite.  I have researched this issue and it appears that it has been an issue with Lacerte at least since 2023.  I shouldn't have to incur additional costs and time to paper file a clients tax return due to a simple calculation error at the fault of Lacerte.  It also seems to be an issue with those filing with Turbo Tax and Pro Series.  

Form 8959 details: Line 19 says "Medicare tax withheld from From W-2, box 6, IF YOU HAVE MORE THAN ONE FORM W2, ENTER THE TOTAL OF THE AMOUNTS FROM BOX 6."  Line 20, "Enter the amount from line 1", which is "The total of the amounts from box 5," of all W2's.  Taxpayer is filing MFJ, which Form 8959 clearly says the below the $250K wage amount, so no additional medicare tax is due.  Line 21, says "Multiply Line 20 by 1.45%. This is your regular Medicare tax withholding on Medicare wages".  Line 22 says, "Subtract line 21 from line 19. If zero or less, enter -0-. This is your Additional Medicare Tax withholding on Medicare wages." Line 24 says, " Total Additional Medicare Tax Withholding. Add lines 22 and 23.  Also include this amount with federal income tax withholding on Form 1040, line 25c....."  Line 25c on the Form 1040 adds the amount as a payment made by the taxpayer, thus reducing any tax due.

Form 8959 instructions say, "... Your employer must withhold additional medicare tax on wages it pays to you in excess of $200K for the calendar year, regardless of your filing status and regardless of wages or compensation paid by another employer.....You cant ask your employer to stop additional tax withholding if it is required to withhold it. IF YOU DON'T OWE ADDITIONAL MEDICARE TAX, YOU CAN CLAIM A CREDIT FOR ANY WITHHELD ADDITIONAL MEDICARE TAX AGAINST THE TOTAL TAX LIABILITY SHOWN ON YOUR RETURN BY FILING FORM 8959...."   

No where does it say the form must be paper filed.  It does say to attach to your Form 1040.  

My client had total wages over $200K and if they had been filing Single then they would have owed the additional tax, but as per Form 8959 and IRS regulations, since they were filing MFJ and total wages were below $250K they do NOT owe the additional medicare tax and per Form 8959 they are ALLOWED to claim a credit on their Form 1040 for the amount that was withheld in excess of the normal 1.45%. 

This efile issue with Form 8959 appears to be a software limitation, NOT an IRS regulation. 

PLEASE FIX THIS INTUIT!!!!!