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5 mar 2024 · The Additional Medicare Tax is an extra 0.9% on earned income beyond a specific threshold limit. This additional tax payment has been around since 2013 as part of the Affordable Care Act (ACA). The Additional Medicare Tax liability helps fund some parts of ACA, including premium tax credits (PTC).
Earned income above a certain threshold is subject to the 0.9% surtax, while investment income can be taxed at an additional 3.8%, depending on the filer’s modified adjusted gross income (MAGI).
The Additional Medicare Tax applies to wages, railroad retirement (RRTA) compensation, and self-employment income over certain thresholds. Employers are responsible for withholding the tax on wages and RRTA compensation in certain circumstances.
1 kwi 2024 · 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.
24 lip 2024 · Since 2013, the additional Medicare tax has been applied to income above designated levels. The standard Medicare tax is 1.45% if someone is an employee or 2.9% if a person is self-employed.
The Affordable Care Act introduced an additional Medicare tax for high earners. If you make over $200k (single) or $250k (married filing jointly), you’ll face this surtax. Ouch.
If you are a high earner, you are subject to the 0.9% additional Medicare tax on earned income in excess of the threshold amount. The threshold amounts are based on your filing status: Single, head of household, or qualifying widow(er) — $200,000
