The Additional Medicare Tax could apply to all wages, compensation, and self-employment income received after December 31, 2012.  The Additional Medicare Tax rate is .9%.  The current Medicare Tax rate is 1.45%.  This means that if the threshold is met, an individual will pay a total Medicare Tax of 2.35%.  An individual is liable for the Additional Medicare Tax if their wages, compensation, or self-employment income (together with that of his or her spouse if filing a joint return) exceed:

Married Filing Jointly	$250,000
Married filing separately	$125,000
Single	$200,000
Head of Household	$200,000
Qualifying widow(er) with dependent child	$200,000

All income items that are currently subject to Medicare Tax are subject to the  Additional Medicare Tax if they are paid in excess of the applicable threshold.

Examples of income items subject to Medicare Tax and the Additional Medicare Tax:

• W-2 wages
• Self-employment income
• Officer wages of a corporation
• Tip income

 

This list is not meant to be inclusive.  Please contact us with specific questions regarding which income items are subject to the Medicare Tax.

 

Form 8959 is used for the purpose of reporting the Additional Medicare Tax.