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Level 2
April 11, 2021
Solved

Form 8959 Additional Medicare Tax is added to tax liability , that same amount is added to tax withheld, is this a tax software glitch or has a new law canceled this tax?

  • April 11, 2021
  • 3 replies
  • 30 views
Additional Medicare tax is added on 1040 line 23, other tax from sch 2, line 10, and the same amount is added to taxes withheld line 25c "other forms", which cancels the medicare tax. Has a current law removed this tax or is this a software glitch?
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Best answer by rbynaker

Starting in 2020 the IRS finally gave us a place to report the amount of additional medicare tax withheld.  In prior years you just lumped it in with federal withholding.  Now it's reported on the 1040 line 25c (flowing from Form 8959 line 24).  In the case of a single taxpayer with one job and no SE income it's just in and out.

3 replies

BobKamman
Level 15
April 11, 2021

You have one spouse who made over the limit while the other spouse made under it.  Call it the "marriage bonus."

Joe71Author
Level 2
April 11, 2021

Taxpayer is single.

rbynaker
rbynakerAnswer
Level 13
April 11, 2021

Starting in 2020 the IRS finally gave us a place to report the amount of additional medicare tax withheld.  In prior years you just lumped it in with federal withholding.  Now it's reported on the 1040 line 25c (flowing from Form 8959 line 24).  In the case of a single taxpayer with one job and no SE income it's just in and out.