What is the additional Medicare tax and net investment income tax?
Starting in 2013, the Affordable Care Act (Obamacare) imposed an additional Medicare tax of 0.9% on high income earners. ($200,000 if filing as Single, Head of Household or Qualifying Surviving Spouse; $250,000 if filing as Married Filing Jointly; and $125,000 if filing as Married Filing Separately).
The act also imposed a net investment income tax of 3.8% on unearned income of taxpayers with high income ($200,000 if filing as Single or Head of Household, $250,000 if filing as Married Filing Jointly or Qualifying Surviving Spouse, $125,000 if filing as Married Filing Separately).
You can simply proceed with your return, and the software will automatically calculate any additional Medicare or net investment income tax and include them on your return.
The act also imposed a net investment income tax of 3.8% on unearned income of taxpayers with high income ($200,000 if filing as Single or Head of Household, $250,000 if filing as Married Filing Jointly or Qualifying Surviving Spouse, $125,000 if filing as Married Filing Separately).
You can simply proceed with your return, and the software will automatically calculate any additional Medicare or net investment income tax and include them on your return.
