citizens and resident aliens living abroad for purposes of this provision. There are no special rules for nonresident aliens or U.S. For more information on what wages are subject to Medicare Tax, see the chart on Special Rules for Various Types of Services and Payments in Section 15 of Publication 15, (Circular E), Employer’s Tax Guide.

Compare Railroad retirement (RRTA) compensation separately to the threshold.Īll Medicare wages, railroad retirement (RRTA) compensation, and self-employment income subject to Medicare Tax are subject to Additional Medicare Tax, if paid in excess of the applicable threshold for the taxpayer's filing status.

Calculating the Additional Medicare Tax on any self-employment income in excess of the reduced threshold.ĭon't consider a self-employment loss for purposes of this tax.

Reducing the applicable threshold for the filing status by the total amount of Medicare wages received (but not below zero) and.

Calculating the Additional Medicare Tax on any Medicare wages in excess of the applicable threshold for the taxpayer's filing status, without regard to whether any tax was withheld.

If you receive both Medicare wages and self-employment income, calculate the Additional Medicare Tax by:

This additional tax is used to help fund the Affordable Care Act tax provisions, including the premium tax credit.

$125,000 for married filing separately and.

A 0.9% Additional Medicare Tax applies to Medicare wages, self-employment income, and railroad retirement (RRTA) compensation that exceed the following threshold amounts based on filing status:

Taxcaster 2022