Yes, the 0.9% on salaries over $250,000.
Here is the problem, and I hope there may be a solution, but it is possible we just have to eat the extra tax.
Husband's W-2 medicare wages are $380,000, wife's medicare wages are $180,000. Total is $560,000 which is over the threshold by $310,000. So the 0.9% tax is $2790.
The husband's excess alone is $130,000 and the employer has covered his tax payment by withholding an additional $1170 for "medicare", and this amount is shown as a tax payment (not a medicare payment). Wif'e's employer knows nothing about her salary which is not over the threshold, and has not withheld ANY additional medicare. However, her entire salary is subject to the 0.9% tax. So the taxpayer is short some $1620.
Is there a way around this, or do they just have to come up with the money and pay? That is the question.
For what it''s worth, I am not heartbroken that people making this kind of money have to suffer through an extra 1600 bucks. However, I do my best to reduce taxes for all my clientele if I can.
Another interesting feature is this is all part of the "Affordable Care Act" and is called an additional "Medicare" tax. I'm told the extra tax simply goes into the general fund coffers and has absolutely nothing to do with medicare or the ACA exchange.
Here is the problem, and I hope there may be a solution, but it is possible we just have to eat the extra tax.
Husband's W-2 medicare wages are $380,000, wife's medicare wages are $180,000. Total is $560,000 which is over the threshold by $310,000. So the 0.9% tax is $2790.
The husband's excess alone is $130,000 and the employer has covered his tax payment by withholding an additional $1170 for "medicare", and this amount is shown as a tax payment (not a medicare payment). Wif'e's employer knows nothing about her salary which is not over the threshold, and has not withheld ANY additional medicare. However, her entire salary is subject to the 0.9% tax. So the taxpayer is short some $1620.
Is there a way around this, or do they just have to come up with the money and pay? That is the question.
For what it''s worth, I am not heartbroken that people making this kind of money have to suffer through an extra 1600 bucks. However, I do my best to reduce taxes for all my clientele if I can.
Another interesting feature is this is all part of the "Affordable Care Act" and is called an additional "Medicare" tax. I'm told the extra tax simply goes into the general fund coffers and has absolutely nothing to do with medicare or the ACA exchange.
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