Answer:
Jill Green and Bill Green
The additional high wage surtax for the joint filers is
$108.
Explanation:
Medicare tax rate = 1.45%
Surtax rate = 0.9%
Jill Green's w-2 wages = $165,000
Bill Green's w-2 wages = 97,000
W-2 wages for couple = $262,000
Threshold for joint filers = 250,000
Excess w-2 wages = $12,000
Additional high wage surtax = $12,000 * 0.9% = $108
b) Jill and Bill Green, who are filing jointly, are expected to pay an additional Medicare tax of 0.9% on their W-2 income in excess of $250,000. The Additional Medicare Tax (AMT) on Wages is imposed on employees only. Employers match the regular Medicare tax of 1.45%. Medicare wages are reported on Form W-2 and are usually based on an employee's total wages for the year less certain benefit deductions, such as medical and dental insurance premiums, health savings accounts, and contributions to dependent care flexible spending arrangements.
