Sorry if this is a dumb question, but will my Medicare tax rate increase as I earn more? My friend mentioned something about an "additional Medicare tax" for higher income people?

Just wanted to share my experience as someone who was in your exact same situation a few years ago! When I first saw Medicare tax being deducted from my paycheck while also paying for my employer's health insurance, I thought there was some kind of mistake. What really helped me understand it was thinking of Medicare tax like car insurance vs. life insurance - they're both insurance, but they cover completely different things at different times. Your BCBS covers you right now for doctor visits, prescriptions, etc. Medicare tax is like putting money into a piggy bank that you can't touch until you're 65 (or qualify due to disability). The key thing that clicked for me was realizing that Medicare isn't just health insurance - it's a government program that provides healthcare for elderly and disabled Americans. So when you pay that 1.45%, you're contributing to a system that takes care of millions of people who can no longer work or afford private insurance. It's definitely frustrating to see money leave your paycheck for something you can't use right now, but think of it as investing in your future self. When you're 65, you'll be really glad this system exists!

Something to consider: the EITC has different income thresholds based on filing status and number of qualifying children. For 2025, with one qualifying child, EITC begins to phase out around $46,500 for single/head of household. If your sister's income is right at one of these thresholds, small changes in AGI can have a big impact on the credit amount. This might explain why you're seeing significant changes in the EITC calculation when making adjustments. Most tax software will let you try different scenarios to see what gives the best outcome. Just make sure whatever you submit is truthful - the difference between optimizing your return and misrepresenting information is a critical line you don't want to cross.

As someone who's dealt with EITC calculations for family members, I can confirm what others have said - you're absolutely allowed to choose not to claim deductions you're eligible for. The IRS doesn't require you to take every possible deduction. However, I'd strongly recommend double-checking which specific deductions are actually affecting your sister's EITC. True itemized deductions (medical expenses over 7.5% of AGI, charitable donations, etc.) shouldn't impact EITC at all since they don't change her Adjusted Gross Income. If you're seeing the EITC decrease when adding these deductions in TurboTax, there might be something else going on - perhaps some expenses are being categorized differently than you think, or there could be an interaction with other credits or calculations. Before making any decisions about skipping deductions, I'd suggest running through the calculations manually or getting a second opinion to make sure you understand exactly what's causing the EITC to change. You want to make sure you're making an informed choice rather than missing out on legitimate tax benefits due to a software quirk or misunderstanding.

Has anyone else noticed that the 1095-A forms are weirdly confusing for marketplace plans? Like why don't they just issue the form to the person who's actually covered by the insurance? I had a similar issue last year and ended up just having the policy holder (my partner) claim everything and then we split the refund/payment based on our agreement. Not technically correct probably but way simpler than doing the allocation.

I just went through this exact situation last month! My mom received the 1095-A but I was the only one covered on the policy, and we file separately. Option A is definitely the way to go. Both you and your dad need to file Form 8962, but with the allocation percentages showing 0% for him and 100% for you. This is actually pretty straightforward once you understand what's happening - you're just telling the IRS who gets to claim which portion of the policy. A few things that helped me: - Make sure you both use the exact same allocation percentages (0%/100%) - You'll need each other's SSNs for Part IV of Form 8962 - Your dad's form will basically show zeros for everything after allocation, but he still needs to file it - Only your income matters for the premium tax credit calculation since you're getting 100% allocation The income difference between you and your dad won't mess anything up because once the allocation is done, his income is completely out of the equation. Your premium tax credit will be calculated based solely on your income and household size. Don't let the allocation part intimidate you - it's really just paperwork to clarify who gets what. The actual tax credit calculation happens separately for each person based on their allocated percentage.

This is why I always get a clear fee agreement BEFORE tax season starts. Most preparers are slammed during the busy season and might be raising rates on services they feel take too much time. $200 extra for a K-1 is steep though - I pay $125 extra for mine and thought THAT was expensive. Maybe ask if they'd be willing to come down on the price since you're a returning client? Otherwise, there are plenty of other tax pros who'd be happy to have your business at a more reasonable rate.

I'm going through something similar right now! My tax preparer just quoted me $350 for adding my rental property K-1 to my return - said it's their "new standard rate" for partnership documents. The K-1 is from a simple rental LLC with just rental income and depreciation, nothing complicated. What really bothers me is that they didn't mention this fee increase when I scheduled my appointment. I've been a client for 4 years and this is the first time they've charged extra for the K-1. When I asked why the sudden increase, they gave me some vague explanation about "increased professional liability" and "new compliance requirements." I'm seriously considering switching preparers or trying to do it myself. Has anyone had luck negotiating these fees down, especially as a long-term client? It feels like they're taking advantage of people who don't want to deal with the hassle of finding someone new during tax season.

Whatever you do, DO NOT WRITE YOUR WIFE'S SIGNATURE yourself. That's technically check fraud and could cause huge problems. I work at a bank and see people try this all the time with joint tax refunds. Either have your wife properly endorse it and mail it back, or contact the IRS to reissue.

I had this exact same situation two years ago with my husband working overseas. Here's what worked for me: First, call your bank directly and ask to speak with someone in their treasury or specialized deposits department, not just a regular teller. Many banks have specific procedures for joint tax refund checks when one payee is abroad, but the front-line staff often don't know about them. Second, the IRS actually has a form (Form 8379 - Injured Spouse Allocation) that can help in some situations, though it's typically used for different circumstances. More importantly, you can request the IRS reissue the check in your name only by explaining your spouse's non-resident status. Third, if your wife can get to a US consulate or embassy, they might be able to help with notarized documentation that your bank would accept. Some banks will accept consular-witnessed endorsements. The key is being persistent and escalating to supervisors who have authority to make exceptions. Don't give up after talking to just one person - banks deal with this more often than you'd think, especially with military families and international marriages. Whatever you do, definitely don't try to forge her signature as others have mentioned. The paper trail and your honesty about the situation will actually work in your favor with both the bank and IRS.