3.8% Medicare Surtax Applies to Estates & Trusts

[Burke]

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]

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.