The additional Medicare Tax calculator is for knowing medicare surcharge you are liable to pay or your employer will withhold.As you know the Medicare is the federal health insurance program as per FICA (Federal Insurance Contributions Act) for people who are 65 or older. But funding for this program is done through the contribution of taxpayers out of his taxable income. The Medicare tax is the amount withheld from salary of an employee with an equal amount of contribution by the employer.
Medicare tax rate is 1.45% for salaried individuals. An equal amount is contributed by the employer. So aggregate deposit on behalf of an employee is 2.9 % of gross wages. In the case of a self-employed person, the Medicare tax rate is 2.9 % of net income.
However ,in 2013, an additional Medicare tax @ rate of 0.9 percent on wages, compensation, and self-employment income received in the taxable years was imposed on people earning above a threshold income. An easy additional medicare tax calculator is created to find out if and how much additional tax you are liable . The logic for computation of additional medicare tax is explained below the tax calculator.
This additional medicare tax is imposed only if
|
Filing Status |
Threshold Amount |
| Married filing jointly |
$250,000 |
| Married filing separately |
$125,000 |
| Single |
$200,000 |
| Head of household (with qualifying person) |
$200,000 |
| Qualifying widow(er) with dependent child |
$250,000 |
Step 4 : Following rules to compute additional medicare tax is applied
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