INDIVIDUAL IS RESPONSIBLE FOR PAYING THE ADDITIONAL 0.9% MEDICARE TAX

INDIVIDUAL IS RESPONSIBLE FOR PAYING THE ADDITIONAL 0.9% MEDICARE TAX.

Josh and Anna are married.  Josh’s salary is $180,000, and Anna’s wages are $150,000.  Assume they have no other wage or investment income.  Their total combined wage income is $330,000 ($180,000 + $150,000).  Since this amount is over the $250,000 threshold, they owe the additional 0.9% Medicare tax on $80,000 ($330,000 – $250,000).  The additional tax due is $720 ($80,000 x .009).  Neither Josh nor Anna’s employer is liable for withholding and remitting the additional tax because neither of them met the $200,000 wage threshold.  Either Josh or Anna (or both) can submit a new Form W-4 to their employer that will result in additional income tax withholding to ensure the $720 is properly paid during the year, Alternatively, they could make quarterly estimated tax payments.  If the amount is not paid until their federal income tax return is filed, they may be responsible for the estimated tax penalty on any underpayment amount (whether the underpayment is actually income taxes or the additional Medicare taxes).