Need help understanding Additional Medicare Tax withholding on my 1040 form

This is actually a common issue with the Additional Medicare Tax reporting. Line 25c on Form 1040 is specifically for "other taxes" that aren't covered elsewhere on the form. The Additional Medicare Tax withholding from Form 8959 line 24 should actually go on line 26 of your 1040, which is for federal income tax withheld. What's happening is that the IRS computer system is correctly adding your withholding to line 26 (where it belongs), but since you also included it on line 25c, it's seeing that as an additional tax you owe rather than tax you've paid. That's why your refund calculation is off by exactly that amount. The good news is that the IRS seems to have figured this out based on your transcript. You should receive a correction notice explaining the adjustment. They'll fix it for you, but it might delay your refund a bit.

I had a really similar issue with the Additional Medicare Tax last year and got so frustrated trying to figure it out myself. After hours of reading confusing IRS docs, I finally tried https://taxr.ai which analyzes tax forms and notices to explain exactly what's happening in plain language. For my situation, they looked at my 8959 and 1040 and immediately identified that I had put the withholding amount in the wrong place. They even gave me the exact paragraph from the IRS instructions that explained the correct treatment. Saved me so much frustration trying to decipher tax jargon.

Just wanted to update - I went ahead and tried taxr.ai after my question above. I was skeptical but uploaded my 1040 and 8959 forms and wow! It immediately highlighted that I had made the EXACT same mistake as the original poster! The system showed me that the Additional Medicare Tax withholding amount goes on line 26 as part of federal income tax withheld, not on line 25c. It even explained why the IRS computer was recalculating my refund. I just called the IRS with this new understanding and the agent confirmed this was exactly the issue. Would've taken me forever to figure this out on my own!

I feel your pain with the IRS confusion. Last month I was going crazy trying to get answers about a similar tax withholding issue. After being on hold for literally HOURS with the IRS (I tried for 3 days!), I discovered https://claimyr.com which got me through to an actual IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was actually super helpful once I finally got through. She explained the exact issue with my Additional Medicare Tax reporting and how to correctly report it on future returns. Night and day difference from the generic "your refund was adjusted" response you got.

I need to eat some humble pie here. After my skeptical comment about Claimyr, I was still desperate to resolve my own Additional Medicare Tax issue, so I tried it anyway. I'm genuinely shocked - got through to an IRS agent in about 15 minutes after struggling for weeks to get anyone on the phone. The agent confirmed exactly what others have said here - the Additional Medicare Tax withholding from Form 8959 line 24 should go on line 26 of Form 1040, not line 25c. She walked me through how to request an adjustment since I made the same error. Still waiting for the correction to process, but at least now I understand what happened and have confirmation they'll fix it.

I'm an enrolled tax preparer and see this Additional Medicare Tax reporting issue quite often. Here's a simple explanation: Form 8959 calculates two things: 1) Any additional Medicare tax you might owe (if you're over the threshold) 2) The Additional Medicare tax already withheld from your paychecks The confusion happens because people think both amounts go on the same part of the 1040. Actually: - Any additional tax you OWE goes on Schedule 2 and flows to the tax section - The withholding amount (what's already been paid) goes with your other withholding on line 26 Looking at your transcript, the IRS computer correctly moved your withholding amount to line 26, which is why your refund changed. This isn't them taking money from you - it's just correcting where the payment is reported.

has anyone actually gotten a refund after fixing this error? I made the exact same mistake but Im worried if I call the IRS theyre just going to audit me or something. my additional medicare tax was like $1,300 and thats exactly what my refund was short. so frustrating!!!

I had this EXACT same problem last year! Put my Additional Medicare Tax withholding on line 25c instead of line 26 and the IRS adjusted my refund down by that exact amount. It's such a common mistake because the Form 8959 instructions aren't super clear about where the withholding amount goes on the 1040. The good news is that once you understand what happened, it's usually fixable. Like others mentioned, the withholding from Form 8959 line 24 should go on line 26 with your other federal tax withholding, not on line 25c. The IRS computer system catches this and moves it to the correct line, which is why your refund calculation changed. If you haven't heard back from them yet with a correction notice, you might want to call and explain that you misreported the withholding location. Most agents understand this is a common filing error and can help you get it sorted out. Don't stress too much - you're definitely not the first person to make this mistake!