Question 1

Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare surtax will Peter and Joan owe with their 2016 income tax return? ​

Accepted Answer

The 0.9% Medicare surtax applies only to wages, self-employment income, and railroad retirement benefits. Peter is retired, so he has no wages or self-employment income. Joan's self-employment income is below the threshold for the surtax, so Peter and Joan will not owe any additional Medicare surtax.

Question 2

Ellen uses the head of household filing status and has a dependent daughter. Ellen has self-employment income of $310,000 as an architect and $10,000 of self-employment losses from a jewelry making business.
a.What is Ellen's 0.9% additional Medicare tax for 2016?
b.Is Ellen allowed to include a portion of the additional Medicare tax in computing the deduction for self-employment taxes reported as an adjustment for AGI on the front page of her income tax return?

Accepted Answer

The answer of Ellen uses the head of household filing...

Quiz 9: Withholding Estimated Payments and Payroll Taxes

Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare surtax will Peter and Joan owe with their 2016 income tax return? ​

Peter and Joan are married and Joan has self-employment income of $240,000. Peter is retired. How much additional 0.9% Medicare surtax will Peter and Joan owe with their 2016 income tax return?