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Reconciling Excess Additional Medicare Tax Withholding

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  • Reconciling Excess Additional Medicare Tax Withholding

    Posted to Bogleheads as well. Happy to hear your all's thoughts.

    Employer started additional Medicare tax withholding after $200k (even though married filing jointly) at 0.9%. All appropriate Medicare tax has been withheld (1.45% on all Medicare wages). Additional tax should only hit us after $250k, though I know the employer is required to withhold after $200k for the individual. Therefore, I appear to have been charged $50,000 x 0.9% = $450 too much in tax. The IRS FAQs on this say that this gets reconciled on the tax return but I don't see where. The 8959 doesn't appear to reconcile this or provide a credit. Curious how this credit gets reconciled. Thank you!

  • #2
    What software are you using? I use H&R Block and input a random W2 with excess Medicare tax withheld. It calculated the appropriate excess on Line 24 of Form 8959 by taking Line 19 minus Line 21. That number looks like it should flow over to your 1040 Line 25c.

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    • #3
      Originally posted by CordMcNally View Post
      What software are you using? I use H&R Block and input a random W2 with excess Medicare tax withheld. It calculated the appropriate excess on Line 24 of Form 8959 by taking Line 19 minus Line 21. That number looks like it should flow over to your 1040 Line 25c.
      Oh duh I see. It gets reconciled between schedule 2 (line 23) and tax withheld (line 25c). Carry on. Nothing to see here other than foolishness. :-)

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