Affordable Care Act - Individuals
How is the increased Medicare taxes on high-income taxpayers calculated?
Answer:
Wages are subject to a 2.9% Medicare payroll tax with the employee and employer each paying half (1.45%). There is no limit to the amount of wages that are subject to the Medicare tax. Self-employed individuals pay both halves.
Beginning in 2013, there is an additional 0.9% (2.35% in total) Medicare tax that applies to wages received in excess of $250,000 for joint filers, $200,000 for single filers and $125,000 for Married filing separate filers.
This additional tax will be filed on new IRS Form 8959 which will transfer to Form 1040 Line 60.
Beginning in 2013, there is an additional 0.9% (2.35% in total) Medicare tax that applies to wages received in excess of $250,000 for joint filers, $200,000 for single filers and $125,000 for Married filing separate filers.
This additional tax will be filed on new IRS Form 8959 which will transfer to Form 1040 Line 60.
