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SMALL BUSINESS NEWS

14 Jan 2013

 

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Medicare Additional Tax Increase For 2013

Another tax increase for 2013 is the Medicare tax.  This is called the "Additional Medicare Tax".    It is a 0.9% tax rate that will be applied to income above the following thresholds.

-Married filing jointly        - $250,000
-Married filing separately - $150,000
-Single                          - $200,000
-Head of household        - $200,000
-Qualifying person          - $200,000

This increase only applies to the employee portion of the medicare tax.  Employers must make the appropriate withholding for any employee who is subject to this tax.

More details can be found at the IRS Q&A webpage.

Sources:
IRS


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