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Single tax filers earning above $200,000, or $250,000 for married couples, pay the 0.9% additional Medicare tax. View the original article on Medical News Today Related articles
This is an additional 3.8% tax (separate from the 0.9% additional Medicare tax that applies to high-wage earners and federal capital gains tax) on income earned through interest, capital gains ...
The IRS adds an additional Medicare tax of 0.90% for incomes over $200,000 ($250,000 for joint filers), bringing that total tax to 3.8%, of which employees owe 1.9%.
Higher income taxpayers, as well as taxpayers with sources of income that are defined as net investment income in the statute, pay an additional 3.8% tax to offset the costs of the Affordable Care Act. [9] This tax first took effect in 2013.
In addition, an additional Medicare tax of 3.8% will apply to unearned income, specifically the lesser of net investment income or the amount by which adjusted gross income exceeds $200,000 ($250,000 for a married couple filing jointly; $125,000 for a married person filing separately.) [62]
What is the additional Medicare tax? Since 2013, additional Medicare tax is applied to income above designated levels. Learn more here. How do WPS Medigap plans work?
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