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The Additional Medicare Tax is an extra 0.9% tax on top of the standard tax payment for Medicare. It applies to taxpayers who earn over a set income threshold.
Find information on the additional Medicare tax. This tax applies to wages, railroad retirement compensation and self-employment income over certain thresholds.
All Medicare wages, railroad retirement (RRTA) compensation, and self-employment income subject to Medicare tax are subject to Additional Medicare tax, if paid in excess of the applicable threshold for the taxpayer's filing status.
The additional Medicare tax is 0.9%, but it doesn’t apply to everyone like standard Medicare tax does. You’ll only have to pay the additional tax if your income surpasses a specific threshold. Knowing how it’s calculated, along with what the additional tax pays for, can help you understand the functionality and reasoning behind the ...
The additional Medicare tax, also known as the “high earners tax,” is a 0.9% tax on income above $200,000 for individuals or $250,000 for married couples filing jointly.
The additional Medicare tax rate is 0.9% but only applies to the income above the taxpayer’s threshold limit. For an individual earning $225,000 a year, the first $200,000 is subject to a ...
What is the additional Medicare tax? The additional Medicare tax of 0.9% applies only to higher wage earners. It is paid in addition to the standard Medicare tax. An employee will pay 1.45%...
The Additional Medicare Tax applies at a rate of 0.9% of all eligible Medicare wages above the threshold for your filing status, which is $200,000 for single filers, $125,000 for married couples filing separately, and $250,000 for joint filers.
Form 8959 is used to calculate how much additional Medicare tax you may owe, depending on the type of income you earn. You should file Form 8959 if your Medicare or RRTA wages exceed $200,000 for single filers or $250,000 for joint filers.
Income up to a threshold amount is subject to the “regular” Medicare tax. Under the Affordable Care Act, taxpayers who earn above a set income level (depending on filing status) pay 0.9% more into Medicare on top of the regular contribution. This extra tax is called the Additional Medicare Tax.