IRS Provides Guidance on the New 0.9 Percent Medicare Tax

Two new surtaxes kicked in on January 1, 2013 for some taxpayers. These taxes have nothing to do with the expiriIRS Provides Guidance on the New 0.9% Medicare Taxng tax breaks involved in the “fiscal cliff.” The first is a 3.8 percent Medicare tax on net investment income. The second is an additional 0.9 percent Medicare tax on wages and self-employment income. It’s possible for a taxpayer to be subject to both taxes (although not on the same type of income). This article explains how the new 0.9 percent Medicare tax works.

Read the full article here.

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