Melody and Todd are married and have employee wages of $250,000 each in 2017.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 2017 income tax return?

Question

Melody and Todd are married and have employee wages of $250,000 each in 2017.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 2017 income tax return? ​

Quizplus · Accepted Answer

The additional 0.9% Medicare tax applies to wages exceeding $250,000 for married couples filing jointly. Since their combined income is $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, the tax withheld would be $900 each (0.9% of $0), so they owe an additional $1,350.

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