Melody and Todd are married and have employee wages of $250,000 each in 2016. They have no other income. How much additional 0.9% Medicare surtax will Melody and Todd have to pay or receive as a refund when they file their 2016 income tax return?

Question

Melody and Todd are married and have employee wages of $250,000 each in 2016. They have no other income. How much additional 0.9% Medicare surtax will Melody and Todd have to pay or receive as a refund when they file their 2016 income tax return? ​

Quizplus · Accepted Answer

The 0.9% Medicare surtax applies to individuals earning more than $200,000 ($250,000 for married filing jointly). For Melody and Todd, the surtax would be calculated as follows:

($250,000 + $250,000 - $250,000) x 0.9% = $2,250

However, the surtax is only applied to the extent that their wages exceed $250,000. Since their wages are exactly $250,000 each, the surtax is not applicable. Therefore, no refund or additional payment will be due with their return for the Medicare surtax.

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