" When Do You Pay Additional Medicare Tax? "

Generally, 1.45% of the wages reported on W2 Form given to Employee are tagged as Medicare Tax without any Wage Limit i.e. They are limit less. Similarly, Self employed also pay Medicare Tax.

Beginning in TY2013, Additional 0.9% Medicare Tax was imposed for High Income Earners. These Income Thresholds are listed below:

Filing Status                 Earnings Over            Additional Medicare Tax
MFJ                                                                         $250,000
S, HOH, QW                                                           $200,000
MFS                                                                         $125,000

Form 8959 is used to compute Additional Medicare Tax and is reported on Form 1040.

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