Question

Christine and Doug are married. In 2019, Christine earns a salary of $250,000 and Doug earns a salary of $50,000. They have no other income and work for the same employers for all of 2019. How much 0.9 percent Medicare tax for high-income taxpayers will Christine and Doug be required to pay with their 2019 income tax return?

Answer 1

Answer:

A) $450

Explanation:

The current Medicare tax for high-income taxpayers is 2.35% for employees and 3.8% for self-employed during 2019.

Since Christine and Doug are married, they must pay the regular 1.45% + 0.9% additional Medicare care for any income above $250,000.

So the additional Medicare tax = ($300,000 - $250,000) x 0.9% = $450

*Their total Medicare tax for 2019 = ($250,000 x 1.45%) + ($50,000 x 2.35%) = $4,800