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Compute the additional Medicare tax for the following taxpayers. If required, round your answers to the nearest dollar.

a. Mario, who is single, earns wages of $428,600.

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Final answer:

To calculate Mario's additional Medicare tax, the amount of income that exceeds the $200,000 threshold for a single filer is multiplied by the additional tax rate of 0.9%. In Mario's case, the additional Medicare tax on his excess income of $228,600 is $2,057.40, rounded to $2,057.

Step-by-step explanation:

The calculation of the additional Medicare tax for a single taxpayer named Mario, who earns wages of $428,600, requires us to understand the specifics of how Medicare taxes function. In addition to the standard Medicare tax of 1.45%, higher-income earners are subject to an additional Medicare tax of 0.9% on earnings above a certain threshold. For a single filer, this threshold is $200,000. Therefore, Mario’s additional Medicare tax would be calculated on the amount of his income that exceeds $200,000. This means he will owe an additional Medicare tax on $228,600 (i.e., $428,600 – $200,000).

The calculation is as follows: $228,600 × 0.9% = $2,057.40, which, when rounded to the nearest dollar, is $2,057.

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