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Old 12-05-2012, 03:25 PM
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What are some Examples of how the 3.8% 'Medicare Surtax' would be imposed on a taxapayer?

The following 5 examples illustrate the application of how the 3.8% Medicare Surtax would be imposed on various taxpayer's in 2013,

1.Single Individual.
Assume a Single taxpayer has $220,000 of net investment income and no other sources of income. The 3.8 percent surtax applies to $20,000 of income since it is the lesser of net investment income of $220,000 or the excess over the MAGI threshold of $200,000 (the threshold level for a Single Taxpayer). The net result is an additional tax liability of $760.00.

2.Married Filing Jointly without Net Investment Income.
Assume a Husband and Wife, filing jointly, earn $275,000 in salaries and do not have any net investment income. The 3.8 percent surtax does not apply since there is no net investment income.

3.Married Filing Jointly with Net Investment Income.
Assume a Husband and Wife, filing jointly, earn $200,000 in salaries and $150,000 of net investment income for a total MAGI of $350,000. The 3.8 percent surtax applies to $100,000 of income since it is the lesser of $150,000 of net investment income or the excess over the MAGI threshold of $250,000. (The threshold level for a Joint Filing Taxpayer).The net result is an additional tax liability of $$3,800.00.

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