Wednesday, October 24, 2012

The New Medicare Taxes

The New Medicare Taxes

          Starting on 1/1/2013, additional Medicare taxes will be imposed on the wages and investment income of high income taxpayers.  These taxes are part of the funding for health care reform and are not expected to be delayed as part of discussions on extending the “Bush era” tax cuts.
          The two Medicare taxes are:
·    0.9% additional Medicare tax on wages of taxpayers in excess of $200,000 (single) and $250,000 (married filing jointly); and
·    3.8% new Medicare tax on investment income of taxpayers with AGI in excess of $200,000 (single) and $250,000 (married filing jointly).  Investment income includes interest, dividends, capital gains and distributions from annuities but not tax-exempt interest or distributions from qualified plans and IRAs.

Information from “Inside Columbus Life”, October 2012 edition

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