Additional Medicare Tax

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The Additional Medicare Tax is added by the Affordable Care Act (ACA). It applies to wages, railroad retirement (RRTA) compensation, and self-employment income over certain threshold amount received in taxable years beginning after Dec. 31, 2012. Employers are responsible for withholding the tax on wages and RRTA compensation in certain circumstances.

Tax rate is 0.9 percent.

An individual is liable for Additional Medicare Tax if the individual’s wages, compensation, or self-employment income (together with that of his or her spouse if filing a joint return) exceed the threshold amount for the individual’s filing status:

 

Filing Status

Threshold Amount

Married filing jointly $250,000
Married filing separate $125,000
Single $200,000
Head of household (with qualifying person) $200,000
Qualifying widow(er) with dependent child $200,000

Read more about Additional Medicare Tax

IRS final regulations (TD 9645)