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Earn More Than $200,000 in 2014? Make Sure To Pay the Additional Medicare Tax

• Max

  2015-04-14 06:09:31 PM

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  Max

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  Did you earn $200,000 dollars or more this year? If so then you will be required to pay an additional Medicare tax that was recently enacted. This is the second filing year for the tax and currently stands at 0.9 percent of your total taxable income. This tax is geared only towards the higher earners and will not effect 95 percent of all Americans, but it is still imperative that those who do make above the amount are aware of this relatively new tax.
  
  The current filing status and threshold amount for the tax is:
  
  Married filing jointly $250,000
  Married filing separate $125,000
  Single $200,000
  Head of household (with qualifying person) $200,000
  Qualifying widow(er) with dependent child $200,000
  
  As you can see--this tax is ONLY for individuals and couples who make a sizable income each year. So if you do not fall into any of those brackets than you will not be required to pay the additional Medicare tax. But if you did then you will be required to pay an additional 0.9 percent of your total income towards this tax.
  
  Did this tax effect anyone for 2013 or 2014's tax season? If so then what do you think about it? While I did not have to pay the tax, I personally find no problem with having a nominal additional tax that would help ensure Medicare's solvency. Do you agree or think that this is an unfair tax because it is only geared towards the wealthy?
• JaredS

  2015-04-14 06:30:22 PM

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  JaredS

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  I didn't know anything about this tax. That's probably because I made less than $200,000 these past two years, but it's good to know that I'll be responsible to pay that tax if I ever do get above that threshold.