how to eliminate Form 8959 calculation for 0.9% additional Medicare Tax

Forum|Forum|4 years ago
February 13, 2022
3 replies
21 views

Hello, I run into a problem this year (2021 tax), per W-2, the additional 0.9% Medicare tax was already done correctly, but somehow on the section, Part V "withholding reconciliation, it did not take the credit the amount from W-2 box 6, and still transfer the 0.9% additional amount to Form 1040, line 25c. Ends up the tax return show the extra tax payment due.

Looks like something need to be done from ProSeries?

Or, anyone know how to correct this???

ProSeries Basic

This topic has been closed for replies.

Best answer by dkh

Are you following the math.... Part I will calculate the actual tax due and flows to Sched 2 Line 11. Part V will calculate a withholding credit that flows to F1040 line 25c. These two amounts should net out to either a zero balance or credit amount depending on filing status.

J

jeffmcpa2010

Level 10

If you look at the 1040 lines 25 a b and c the additional medicare withheld should be on line c.

samsjj88Author

Level 3

Yes. It is correct if there is really a due for the additional 0.9% Medicare tax needed to be applied to the tax return.

But on the W-2 show a correct amount already which included all "standard & additional tax" Medicare Tax amount.

Form 8959 show the calculation and but did not reconcile and apply only the difference, if any, to line 25 c. ..... It went ahead apply the full 0.9% additional tax to Form 1040. That means we add extra and not necessary amount for the tax due.

Is this a tax program error????

dkhAnswer

Level 15

Are you following the math.... Part I will calculate the actual tax due and flows to Sched 2 Line 11. Part V will calculate a withholding credit that flows to F1040 line 25c. These two amounts should net out to either a zero balance or credit amount depending on filing status.

dkh

Level 15

Funny you should ask about F8959, because I just finished reviewing a clients for accuracy. PS Professional is calculating correctly. You should have information in Part I and Part V.

samsjj88Author

Level 3

Thank you!!

I kept on trying to find problem on Form 8959 and totally forgot to check the "payment & credit" section!!

Everything is correct!! My mistake!!

😞

dkh

Level 15

A happy ending - hooray!

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