New Tax Law Creates Medicare Tax Cutoff Suspense

Analysis July 08, 2025 at 12:58 PM
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What You Need To Know

  • The so-called Medicare surtax amounts to 3.8% of certain types of income over $200,000 for individual filers.
  • The 0.9% additional Medicare tax applies to wages and net self-employment income over $200,000 for individual filers.
  • Neither threshold is adjusted for inflation.
  • One question about OBBBA is what it will do to the odds that moderately high-income taxpayers will reach the Medicare surtax or additional Medicare tax threshold.
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