3.8% Medicare Surtax Applies to Estates & Trusts

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  • Burke
    Senior Member
    • Jan 2008
    • 7068

    #1

    3.8% Medicare Surtax Applies to Estates & Trusts

    Note that this surtax, which is effective 1/1/2013, applies to net taxable investment income which exceeds the threshold for estates and trusts as well as for individuals. The threshold for estates & trusts is $12,000.

    Here is a good discussion link. http://blog.aicpa.org/2012/07/estate...re-surtax.html.
  • John of PA
    Senior Member
    • Jul 2005
    • 1104

    #2
    Thanks for the heads up. FYI While it does indeed apply to Estates and Trusts, the calculation is a bit different. It's 3.8% of the lesser of 1) net investment income (undistributed, of course) or 2) The Modified AGI subject to the top tax bracket rate.

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