Author Topic: Confusion On Withholdings  (Read 1591 times)

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Offline mrclose

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Confusion On Withholdings
« on: November 28, 2014, 03:21:38 AM »
I have a friend who at seventy four years of age still works part time.
The 'captured' image below is from her latest pay stub.

I usually do her EZ tax returns for her but not being an accountant, she has a question which I haven't found an answer to in my searches.

Medicare (FICA-HI) is taken out in her paychecks but she also pays for Medicare through her monthly Social Security benefits.

This seems to be a double payment to Medicare?

To be clear, her paychecks deduct for Medicare and before the government deposits her SS benefits to her banking account, Medicare is deducted from that too.

My question is, Can she apply to get the FICA-HI refunded on her tax return?

Thanks

« Last Edit: November 28, 2014, 03:24:54 AM by mrclose »
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Offline Dori

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Re: Confusion On Withholdings
« Reply #1 on: November 28, 2014, 09:11:26 AM »
This looks like she works for a Fed. or St agency.  I would call her employer and ask.  Does the FICA-HI apply to her Medicare part B?  Did she apply for Medicare part B or does she only pay for part A?
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Offline marv

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Re: Confusion On Withholdings
« Reply #2 on: November 28, 2014, 09:20:29 AM »
I think it's her Medicare Part B.
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Offline mrclose

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Re: Confusion On Withholdings
« Reply #3 on: November 28, 2014, 05:16:14 PM »
This looks like she works for a Fed. or St agency.  I would call her employer and ask.  Does the FICA-HI apply to her Medicare part B?  Did she apply for Medicare part B or does she only pay for part A?

She works in a store deli.
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Offline Dori

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Re: Confusion On Withholdings
« Reply #4 on: November 28, 2014, 06:33:11 PM »
She works in a store deli.

It's my understanding that they withhold fica and medicare taxes on all earned income regardless of age.  If you were filing a 1040 long form with a Sch. A, itemized deductions, she could use medicare payments in her total of all combined medical expenses, subject to 7.5% deduction of her adjusted gross income.
“How fortunate for governments that the people     they administer don't think”  Adolph Hitler