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?

Question

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? ​

Quizplus · 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.

Peter and Joan Are Married and Joan Has Self-Employment Income