Traditional Year-End Strategies (Part 3)

The Additional Medicare Tax increases the employee share of the Medicare tax by an additional 0.9% of covered wages in excess of certain threshold amounts. The tax also increases Medicare tax on self-employment income by an additional 0.9% of self-employment income in excess of the threshold amounts. The threshold amounts are:
– $200,000 for single individuals and heads of households
– $250,000 for married filing joint couples
– $125,000 for married filing separate

This is now the 2nd year in which affected taxpayers will file returns reflecting Additional Medicare Tax. Taxpayers who only now realize that they have had insufficient income tax withholding may request that their employer(s) take out an additional amount of income tax withholding, which would be applied against taxes shown on the taxpayer’s individual income tax return, including any Additional Medicare Tax liability. Taxpayers may also consider making estimated payments.

Quick Contact Form

Use the form below to send us a quick message and we’ll get back to you soon!

Office Hours

Our office hours change throughout the year. Our current office hours are below: