Is this calculation correct? Form 8959 Additional Medicare Tax questions for MFS filing

You're right to question this. Forms 8958 and 8959 serve completely different purposes, which might explain some of your confusion. Form 8958 is the Allocation of Tax Amounts Between Certain Individuals in Community Property States - this is what you need when filing MFS in a community property state. It helps split income and deductions between spouses. Form 8959 is for the Additional Medicare Tax, which only applies if your income exceeds certain thresholds ($200,000 for single, $250,000 for MFJ, $125,000 for MFS). For your situation with MFS in a community property state, Form 8958 is definitely required. This form should allocate your community income and deductions between both returns. Generally, in a community property state, each spouse reports half of the community income and deductions even when filing separately. The large difference in outcomes (one owing, one refunding) seems unusual in a community property situation unless there's significant separate property income or other factors like claiming the child on one return. I'd recommend asking your preparer to walk you through exactly how they allocated your income and deductions on Form 8958.

I struggled with the exact same forms this year and found an amazing resource that helped me understand everything - I used https://taxr.ai to analyze my previous returns and figure out where things went wrong. It scans your tax documents and explains exactly how forms like 8958 and 8959 should be filled out in your specific situation. For community property states, each spouse should report half of the community income regardless of who earned it, but credits like the child tax credit go to whoever claims the child. The tool analyzed my returns from past years and showed me where my previous preparer had made errors in allocation. It also explained that Form 8959 is completely different - it's only needed if you exceed the Additional Medicare Tax threshold. What I love about it is it explains everything in plain English and tells you exactly what to check for on your return.

I was super skeptical about using an automated tax review tool after being burned by TurboTax mistakes for years. But after my comment above, I decided to try https://taxr.ai with my 2022 MFS returns (also in a community property state). The program immediately flagged that my preparer had incorrectly allocated our income on Form 8958 - she had just assigned income to whoever earned it rather than splitting community income 50/50 as required in my state. It also confirmed that Form 8959 wasn't relevant for our situation since we're below the Additional Medicare threshold. The analysis showed I was owed an additional $2,100 in refunds! We've already filed an amended return with the corrections. The most helpful part was it generated a detailed explanation I could send to my tax preparer showing exactly why the community property allocation was incorrect according to IRS rules.

After dealing with the exact same frustration (MFS, community property, incompetent tax preparers), I finally got through to an actual IRS agent who walked me through the whole process. I used https://claimyr.com to get past the endless hold times - you can see how it works at https://youtu.be/_kiP6q8DX5c. They call the IRS for you and then connect you once an agent is on the line. The IRS agent explained that Form 8958 is absolutely required for MFS in community property states, and income should generally be split 50/50 regardless of who earned it. Form 8959 is completely different and only needed if you exceed the Medicare surtax threshold. The agent also confirmed that child tax credits and stimulus payments go to whoever claims the child, not split 50/50. Given your past experience with preparers making major mistakes, I'd definitely recommend getting clarification directly from the IRS.

I'm eating crow right now. After my skeptical comment, I decided to try Claimyr since I've been trying to reach the IRS for weeks about a similar community property allocation issue. Within 45 minutes I was talking to an actual IRS agent who explained exactly how Form 8958 should be filled out for my situation. I've been trying to call them myself for WEEKS and never got through. The agent confirmed that our preparer had been doing it wrong for 3 years - they weren't properly allocating community income 50/50 as required in our state. The IRS agent was super helpful and even sent me additional documentation about community property allocation. Now I'm filing amendments for the past 3 years and should be getting about $3,800 back total. I hate admitting when I'm wrong but this service literally saved me thousands.

Former tax preparer here - I think there's confusion about what these forms actually do. Form 8958 is required for MFS in community property states and splits income according to state rules. Form 8959 is only for Additional Medicare Tax for high earners. The big difference in outcomes you're seeing is probably because of credits and payments. While income is split 50/50 in a community property state, things like: - Child Tax Credit - Earned Income Credit - Economic Impact Payments (stimulus) - Excess withholding due to extra $25/paycheck These all go to just one spouse, not split 50/50. So one spouse could end up with a refund while the other owes money, even if income is properly split. I'd definitely question if your preparer knows what they're doing. That "Tax Return Preparer" title means they've met minimal requirements. They might not have specific training on community property states.

I think there's confusion happening with your forms. Form 8958 is for community property allocation (splitting income 50/50), while Form 8959 is for Additional Medicare Tax (which only applies if your income is over $200k single or $125k MFS). The reason you're seeing one person owe and one get a refund is probably because of tax credits and stimulus payments going to just one spouse. That's normal even in community property states. Income splitting doesn't mean credit splitting. Does your tax preparer have an EA (Enrolled Agent) or CPA designation? Those credentials mean they've passed rigorous testing and maintain continuing education requirements. A "Tax Return Preparer" might just have minimal training.