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The extra 0.9 percent Medicare tax
A provision in the Affordable Care Act calls for an additional 0.9 percent Medicare payroll tax on wage income over certain thresholds. This is on top of the 1.45 percent Medicare tax for which taxes already are withheld.
Employers must withhold the added tax when taxpayers' income exceeds the following thresholds:
|Filing status||Income amount|
Married filing jointly||
Married filing separately||
Head of household||
Qualifying widow/widower with dependent child||
The added Medicare tax also applies to self-employment earnings. And the earnings thresholds are not indexed for inflation, so more individuals could face the tax as incomes increase.
Tax tip: If your employer withheld the added tax because you made more than $200,000, but your combined income with your spouse does not meet the $250,000 joint filing threshold, you'll claim credit for any excess Medicare tax when you file your return.