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Additional Medicare Tax - Podcast text script

HI… I’M BETTY… AND I WORK FOR THE INTERNAL REVENUE SERVICE.      

STARTING IN 2013… A NEW ADDITIONAL MEDICARE TAX MAY APPLY TO YOU IF YOU WORK AND MAKE MORE THAN CERTAIN AMOUNTS.       

ADDITIONAL MEDICARE TAX WILL NOT APPLY TO MOST WORKERS.    

SO HERE IS WHAT YOU NEED TO KNOW ABOUT THE TAX… WHETHER IT APPLIES TO YOU… AND HOW TO START PLANNING FOR IT.      

THE NEW ADDITIONAL MEDICARE TAX RATE IS ZERO-POINT-NINE PERCENT OF WAGES… COMPENSATION… AND SELF-EMPLOYMENT INCOME YOU EARN… BUT ONLY ON WHAT YOU EARN ABOVE CERTAIN AMOUNTS.       

THIS IS IN ADDITION TO THE REGULAR MEDICARE TAX YOU ALREADY PAY.       

IF YOU ARE A SINGLE TAXPAYER … THE TAX APPLIES TO ANY AMOUNT YOU MAKE OVER 200-THOUSAND DOLLARS A YEAR.        

BUT THIS AMOUNT IS DIFFERENT IF YOU’RE MARRIED.                  

IF YOU ARE MARRIED  AND FILE A RETURN JOINTLY WITH YOUR SPOUSE… THE TAX APPLIES TO ANY AMOUNT THE TWO OF YOU TOGETHER MAKE THAT IS MORE THAN 250-THOUSAND DOLLARS.        

AND FOR A MARRIED PERSON WHO FILES A SEPARATE RETURN… THE KEY THRESHOLD TO KEEP IN MIND IS 125-THOUSAND DOLLARS.      

IF YOU OWE THE TAX… YOU’LL REPORT IT ON YOUR RETURN BY FILLING OUT FORM 8959.       

YOUR EMPLOYER WILL WITHHOLD ADDITIONAL MEDICARE TAX FROM ALL OF YOUR YEARLY PAY THAT IS OVER 200-THOUSAND DOLLARS.        

BUT BECAUSE EVERYONE’S TAX SITUATION IS DIFFERENT… THIS MAY NOT BE ENOUGH.        

SO TO MAKE SURE YOU DON’T COME UP SHORT AT THE END OF THE YEAR,…YOU MAY WANT TO HAVE YOUR EMPLOYER TAKE OUT MORE INCOME TAX FROM YOUR PAY.       

OR… IF YOU PREFER… YOU MAY WANT TO COVER THE SHORTFALL BY MAKING QUARTERLY ESTIMATED TAX PAYMENTS TO THE I-R-S.             

TO HELP YOU FIGURE OUT WHETHER ADDITIONAL WITHHOLDING OR ESTIMATED TAX PAYMENTS ARE NECESSARY… AND IF SO…FOR HOW MUCH… USE THE I-R-S WITHHOLDING CALCULATOR TOOL AT I-R-S-DOT-GOV.       

YOU CAN FIND OUT MORE ABOUT THIS NEW TAX BY GOING TO W-W-W-DOT-I-R-S-DOT-GOV AND BY TYPING ADDITIONAL MEDICARE TAX IN THE SEARCH FIELD.  

Page Last Reviewed or Updated: 03-Jan-2014