Phoenix Indian Community - PhoenixIndian.com
| | |
 


 

Five Facts about the Additional Medicare Tax

Money
Contributed by : Mukesh Makker

Share With Your Friends

Add To My Favorite
Some taxpayers may be required to pay an Additional Medicare Tax if their income exceeds certain limits. Here are some things that you should know about this tax:

1. Tax Rate. The Additional Medicare Tax rate is 0.9 percent.

2. Income Subject to Tax. The tax applies to the amount of certain income that is more than a threshold amount. The types of income include your Medicare wages, self-employment income and railroad retirement (RRTA) compensation. See the instructions for Form 8959, Additional Medicare Tax, for more on these rules.

3. Threshold Amount. You base your threshold amount on your filing status. If you are married and file a joint return, you must combine your spouse's wages, compensation or self-employment income with yours. Use the combined total to determine if your income exceeds your threshold. The threshold amounts are:

Married filing jointly: $250,000
Married filing separately: $125,000
Single: $200,000
Head of household: $200,000
3. Withholding/Estimated Tax. Employers must withhold this tax from your wages or compensation when they pay you more than $200,000 in a calendar year. If you are self-employed you should include this tax when you figure your estimated tax liability.

4. Underpayment of Estimated Tax. If you had too little tax withheld, or did not pay enough estimated tax, you may owe an estimated tax penalty. For more on this, please call.

5. Form 8959. If you owe this tax, file Form 8959, Additional Medicare Tax, with your tax return. You also report any Additional Medicare Tax withheld by your employer on Form 8959.

If you have any questions about the Additional Medicare Tax, help is just a phone call away.


About Author
Mr. Maker is a certified Public Accountant and serving the South Asian community since 1993.


Website: https://taxmaker.com/archive.php?archive=032019#9

 

Disclaimer: Please use this channel at your own discretion. These articles are contributed by our users. We are not responsible or liable for any problems related to the utilization of information of these articles.

 

View All Contributions

My Business:
Accounting and Tax Professionals, Inc
Bellevue

Post an Article
Notify Me of New Articles

Become A Featured Contributor
Add Your Blog | Add Recipe | Add Article

More Article by Mukesh Makker

View All Articles

Featured Contributors


Praveen Nair

Aayushi Manish

Christine Dunbar
Christine Dunbar

Darshan Goswami

Anu Peshawaria

Rima Arora
Rima Arora

Vivek Wadhwa

Shruti Sadolkar

Ananya Kiran
Ananya Kiran

Latest Articles

Pritam's music has always been my favourite says Kartik Aaryan by Staff
Choreographer Sandip Soparrkar joins hands with Letsallhelp.org and adopts 2000 girls for their hygiene requirements by Staff
'Drame na De' Girish Nakod Feat Muhfaad & Ankita Thakur released by Vsquare Music on Valentine's Day! by Staff
First Look: NRI Diary starring Aman Verma by Staff
Gully boy singer Jasleen Royal finds a fan in Tapasee Pannu by Staff
View All Articles