How Is the Medicare Surtax Calculated?


Quick Answer

The Medicare surtax is calculated by taking 0.9 percent of the self-employment income, wages and compensation a taxpayer receives annually in excess of the threshold amount, according to the Internal Revenue Service. The threshold amount depends on a taxpayer's filing classification.

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Full Answer

As of 2015, the threshold amount is $250,000 for married individuals filing jointly, $125,000 if married filing separately, and $200,000 for taxpayers who are single, head of a household or widowed with a dependent child, explains the IRS. Noncash fringe benefits and other wages that are taxable but that the individual does not receive in cash are included in the additional Medicare tax calculation when their values are added to the taxpayer's other wages and the total exceeds the threshold.

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