Q:

Does the percentage of income going towards Medicare change according to income level?

A:

Quick Answer

People who earn high incomes pay an additional 0.9 percent to Medicare, explains the Society for Human Resource Management. The threshold for this adjustment is $250,000 for couples filing jointly, $125,000 for couples filing individually and $200,000 for single taxpayers.

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Full Answer

The additional Medicare contribution from high income earners went into effect in 2013 as a reconciliation for the Patient Protection and Affordable Care Act, notes the American Institute of CPAs. Also in 2013, investment income for individuals, estates and trusts became subject to a 3.8 percent Medicare tax after the same high-income threshold.

The standard 2015 Medicare contribution rate is 1.45 percent from both employer and employee, according to the U.S. Social Security Administration. Self-employed individuals pay both the employee and employer portions. Medicare contributions do not have an earnings limit.

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