Melody and Todd are married and have employee wages of $250,000 each in 2018.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 2018 income tax return?

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Quizplus · Accepted Answer

The additional 0.9% Medicare tax applies to wages exceeding $250,000 for married couples filing jointly. Since their combined wages are $500,000, they exceed the threshold by $250,000. The additional tax is 0.9% of $250,000, which equals $2,250. Since each had $250,000 in wages, $1,350 (0.9% of $150,000) would have been withheld, leaving $1,350 due.

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