tmo1
Level 2

Hi All

I am at a quandary - I have a client who has met the max tax deductions on their Schedule A of 10K however when I popped in additional property taxes (because my client just wanted record of it) it didnt change the itemized deduction total (which I expected) but what it did change was the calculation of additional Medicare tax. They are high income earners and over 250K and are subject to the additional medicare tax but WHY would additional property taxes effect this calculation if it doesnt change the total itemized deduction or the tax liability (before the additional medicare tax). I did review the additional medicare tax form and its based on wages so I have no idea how property taxes is coming into play on this form. Is this an error on the software part or am I misunderstanding the calculation of the Additional medicare tax?, 

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rbynaker
Level 14

Are you sure it's not adjusting NIIT instead?

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tmo1
Level 2

Yes actually your correct it is. Sorry false alarm - I thought I was going crazy.

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rbynaker
Level 14

It's tax season.  We're all crazy.

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tmo1
Level 2

LMAO - isnt that so true 😂 - thank you!

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