For employees, that threshold is $200,000 in 2024. That means that for every dollar in earnings over $200,000, the Medicare tax withheld will be 3.8%, which is 2.9% plus 0.9%, says Bai. For the self-employed, thresholds vary based on tax filing status, says Miller. The additional 0....
The threshold for each bracket can cause a sudden jump in the monthly premium amount you pay. If your income crosses over to the next bracket by $1, all of a sudden your Medicare premiums can jump by over $1,000/year. If you are married filing a joint tax return and both of you a...
Your employer will begin withholding the additional Medicare tax once your wages reach a certain amount. Your filing status isn’t important for this. Withholding starts when your wages and other compensation are more than $200,000 for the year. This is true even if you won’t be liable for...
you will have to complete all sections that apply. Once you complete Form 8959 and figure out the total Additional Medicare Tax you're responsible for, the final section of the form subtracts the tax you paid through paycheck withholding as shown on your W-2. The result shows if ...
an employee who anticipates that he or she will be liable for additional Medicare tax—for example, if household wages will exceed the married filing jointly threshold—may request that the employer deduct and withhold an additional amount of income tax on Form W-4,Employee’s Withholding Allowan...