The National Directory of Certified Public Accountants

Ask A CPA - Medicare Tax Additional

Are Tips Subject To Additional Medicare Tax?

Yes, tips are subject to Additional Medicare Tax, if, in combination with other wages, they exceed the individual’s applicable threshold. Tips are subject to Additional Medicare Tax withholding, if, in combination with other wages paid by the employer, they exceed the $200,000 withholding threshold.

If you need professional help with "Medicare Tax Additional" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.