Additional Medicare Tax

Starting with your 2013 income tax, a new Medicare tax may apply to you if you work and make more than certain amounts. It will not apply to most workers.

The new Medicare tax rate is 0.9% of wages, compensation, and self-employment. This is in addition to the regular Medicare tax you already pay.

If you are a single taxpayer, the new tax applies to any amount you make over $200,000. If you’re married and filing jointly, the tax applies to any amount you both make over $250,000. For those married and filing separately, the tax applies to any amount over $125,000.

If you owe the tax, you’ll report it on Form 8959. Your employer will withhold additional Medicare tax for all pay over $200,000.

Find out more by going to IRS.gov and typing “Additional Medicare Tax” in the search field.

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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