Understanding Medicare Additional Tax
Form 8959 Additional Medicare Tax (2014) Free Download from www.formsbirds.com The Medicare Additional Tax is a Medicare tax that applies to high-income taxpayers who earn more than $200,000 as an individual or $250,000 as a married couple filing jointly. This tax was put in place in 2013 as a way to help fund the Affordable Care Act, also known as Obamacare. The Medicare Additional Tax is also known as the Medicare surtax or the Medicare Investment Income Tax. It is important for taxpayers to understand how this tax works and how it affects their taxes. The Medicare Additional Tax is an additional 0.9% of the wages that are earned above the threshold. This means that if a taxpayer earns $225,000 as an individual, they would only be required to pay the additional tax on the $25,000 that is over the threshold. The Medicare Additional Tax is not a flat rate tax like the regular income tax, but instead it is based on the amount of wages that are earned over the threshold. The tax rate...