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Home tax calculator

Additional Medicare Tax Calculator -With How ,Why & What Explanation !

by Prashant Thakur
February 12, 2019
in tax calculator
0

additional medicare tax calculatorThe 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.

What is Additional  Medicare Care tax?

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.

Additional  Medicare Tax Calculator

Logic Used for Medicare Tax Calculator

This additional medicare tax is imposed only if

Step 1 : Find your wages or self employment income
Step 2 :  Find your tax filing status
Step3 : Keep in mind the threshold income which is given below .

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

  1. Normal medicare tax rate  for individual is 1.45 % of gross wages or salary
  2. Normal medicare tax rate for self employed person is 2.9 % of Gross income.
  3. If wage or self employment income is more than the threshold amount , only then you are liable for additional medicare tax .

 

 You can read FAQ by IRS on additional medicare tax

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Post Disclaimer

While the information on this site  - Internal Revenue Code Simplified-is about legal issues, it is not legal advice or legal representation. Because of the rapidly changing nature of the law and our reliance upon outside sources, we make no warranty or guarantee of the accuracy or reliability of information contained herein.

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      • 2019 & 2018 Standard Deduction
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