All about Additional Medicare Tax

As a Tax payer you must be aware of all the terms and tax benefits that you can get. May people are unaware of Additional Medicare Tax which was implemented recently in the year 2013.  It was implemented in the basis of Affordable care Act (ACA).

According to ACA, If your income exceeds a certain limit, you are required to pay an Additional Medicare Tax on top of the ‘regular’ Medicare tax.

Who needs to pay Additional Medicare Tax?

The IRS rule states that the percentage of additional Medicare tax is 0.9%. It is applied to:

  1. Wages
  2. Self-employment income
  3. Railroad retirement (RRTA) compensation that exceed a certain threshold

What is the income limit beyond which Additional Medicare tax is levied?

A tax payer is liable for Additional Medicare Tax if his income exceeds the following amount:

  • Single – $200,000
    • Married Filing Separately – $125,000
    • Married Filing Jointly – $250,000
    • Head of Household – $200,000
    • Qualifying Widow(er) with Dependent Child – $200,000

The Additional Medicare Tax also applies to the value of non-cash taxable wages, such as fringe benefits.

What the Law States?

According to IRS, if employee earns over $200,000 from an employer in a calendar year, the employer must withhold Additional Medicare Tax from your wages. The employer is ordered to withhold the taxes without taking care of employee’s filing status or their income from other sources.

What we offer?

If you are unable to understand the process, simply contact our professionals at Tax Help MD who will guide you through the whole process.


Looking for a Tax Help? My Tax Help MD is a professional tax relief providing platform that can provide you meaningful IRS tax relief services. We have helped many Americans in dealing with their tax filing and payments. If you have a busy schedule or you can’t handle the process required for your tax file, you better consult us to get the things done in a professional manner for you. We provide the best tax audit help in the United States.

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By |2016-07-27T00:59:03+00:00July 27th, 2016|Blog|0 Comments

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