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December 7, 2019
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This is a Medicare/Medicare Tax Question: it appears that return is double counting additional medicare tax

  • December 7, 2019
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This is a Medicare/Medicare Tax Question:  Have a client with two W-2s:  One standard with $208,564.88 in Medicare Wages and $3,101.27 withheld; the second is an executive pension plan (deferred Comp) with Medicare wages of $695,149.65 and Medicare tax withheld $16,336.02.  So total medicare wages of $903,715 and total withheld on W2s of $19,437.  So total medicare tax due is $13,104 (1.45% times all) and $6,333 (0.9% times $703,715--filing single).  So the amount withheld on W2s is equal to total medicare tax due.  However, still picking up $6,333 on 1040 Line 14 (from Form 8959).  It seems client is being double taxed... tips on how to fix?  Do I need to override?  If so, how?

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Best answer by itonewbie

Did you check Part IV, particularly Line 19.  Is that showing $19,437?  Do Line 1 and Line 20 have the correct Medicare wages from the W-2s?  I'd start from there before deciding whether an override is necessary.  FWIW, I don't recall seeing any complaint about additional medicare taxes this year.

1 reply

itonewbie
itonewbieAnswer
Level 15
December 7, 2019

Did you check Part IV, particularly Line 19.  Is that showing $19,437?  Do Line 1 and Line 20 have the correct Medicare wages from the W-2s?  I'd start from there before deciding whether an override is necessary.  FWIW, I don't recall seeing any complaint about additional medicare taxes this year.

---------------------------------------------------------------------------------Still an AllStar