What is the Additional Medicare Tax owed for a married couple filing jointly with combined salaries of $275,000?

What is the Additional Medicare Tax owed for a married couple filing jointly with combined salaries of $275,000?

• A. $0
• B. $135
• C. $225
• D. $450

Answer: (B)

To determine the Additional Medicare Tax owed by a married couple filing jointly with combined salaries of $275,000, it is important to understand how the Additional Medicare Tax works. The Additional Medicare Tax applies to income that exceeds certain thresholds. For couples filing jointly, the threshold is $250,000. The Additional Medicare Tax rate is 0.9% on the income over this threshold. In this case, the couple's combined income of $275,000 exceeds the threshold by $25,000 ($275,000 - $250,000). To calculate the Additional Medicare Tax: 1. First, determine the amount of income that is subject to the tax, which is $25,000. 2. Then, apply the tax rate of 0.9% to this amount: $25,000 * 0.009 = $225. Therefore, the correct amount of Additional Medicare Tax owed by this couple is $225. This assessment is crucial for understanding how thresholds and tax rates impact tax liabilities for high-income earners.

To determine the Additional Medicare Tax owed by a married couple filing jointly with combined salaries of $275,000, it is important to understand how the Additional Medicare Tax works. The Additional Medicare Tax applies to income that exceeds certain thresholds.

For couples filing jointly, the threshold is $250,000. The Additional Medicare Tax rate is 0.9% on the income over this threshold. In this case, the couple's combined income of $275,000 exceeds the threshold by $25,000 ($275,000 - $250,000).

To calculate the Additional Medicare Tax:

1. First, determine the amount of income that is subject to the tax, which is $25,000.

2. Then, apply the tax rate of 0.9% to this amount:

$25,000 * 0.009 = $225.

Therefore, the correct amount of Additional Medicare Tax owed by this couple is $225. This assessment is crucial for understanding how thresholds and tax rates impact tax liabilities for high-income earners.