How to Calculate Medicare Surtaxes

How to Calculate Medicare Surtaxes

Dannette Saltzgaber July 4, 2021

A number of prior columns dealt with the fundamentals of the Medicare surtax of 3.8 % on investment decision profits. This a person gives examples of how taxpayers calculate their surtaxes. To start with, though, let’s recap fundamental conditions like “modified modified gross income” (MAGI) and “Net Financial commitment Income” (NII).

Surtaxes are keyed to MAGI. Taxpayers have to have to issue by themselves with surtaxes when a MAGI volume exceeds an relevant threshold.

The threshold quantities are based mostly on filing standing. They are $250,000 for joint filers $125,000 for married partners submitting different returns and $200,000 for one

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How Do Medicare Surtaxes Work?

Dannette Saltzgaber July 2, 2021

I devoted a current column to the highlights of 2020’s seven graduated tax brackets and the Medicare surtaxes. I ended it with a assure, Expensive Viewers, to notify you, as Garrison Keillor of A Prairie House Companion would say, far more than you ever wished to know about the surtaxes.

I will use this column and many subsequent types to make excellent on that promise. Let’s start off with the top graduated bracket. It’s 37 p.c.

Which filers fall into that bracket? The respond to relies upon on their taxable income—what stays immediately after compensation and other forms of reportable

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