Rena and Ronald,a married couple,each earn a salary of $200,000. They will be required to pay additional payroll taxes in 2014 of

Question

Quizplus · Accepted Answer

The additional payroll tax is the Medicare surtax of 0.9% on earned income over $200,000. Thus, Rena and Ronald will each be subject to a Medicare surtax of $1,800 ($200,000 x 0.9%). Combined, they will owe $3,600 in Medicare surtaxes, which is the difference between the total earned income ($400,000) and the $250,000 threshold for married couples filing jointly. Therefore, the correct answer is B.

Rena and Ronald,a Married Couple,each Earn a Salary of $200,000