Additional 0.9% Medicare tax

Description

Abstract: Individuals must pay an additional 0.9% Medicare tax on earned income above certain thresholds. This article explains those thresholds and how the tax applies at different income levels depending on the employee’s marital and filing status. It also discusses the effect on self-employed individuals. A sidebar illustrates how the tax works by looking at the case of “Josh and Anna,” whose individual incomes fall below the tax’s threshold, but whose combined income exceeds it.