Melody and Todd are married and have employee wages of $250,000 each in 2019. They have no other income. How much additional 0.9% Medicare tax will Melody and Todd have to pay or receive as a refund when they file their 2019 income tax return?

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Quizplus · Accepted Answer

The additional 0.9% Medicare tax applies to individual income exceeding $200,000. Since both Melody and Todd each have wages of $250,000, they both exceed this threshold by $50,000 each. Therefore, the additional tax due is 0.9% of $50,000 for each, which equals $450 per person. Combined, they owe an additional $900 in Medicare tax, making the total $1,350 due with their return.

Melody and Todd Are Married and Have Employee Wages of $250,000