Beginning in 2013, higher income individuals with net investment income will be subject to a 3.8 percent tax of the lesser of two amounts:
Your net investment income, or
the excess of the taxpayer’s modified adjusted gross income over a $200,000 (single) or $250,000 (joint filers) threshold amount.
If the taxpayer’s adjusted gross income is greater than the $200,000/$250,000 threshold, the excess becomes a limitation on the amount of net investment income exposed to the surtax. For example, if a joint return has a modified adjusted gross income of $260,000, the $10,000 excess becomes the limitation.
Also tax #2
Medicare surcharge tax on earned income
Presently, the Medicare tax applies to all wages and self-employment income. For wage earners, both the employer and the employee pay 1.45 percent, whereas a self-employed taxpayer pays the entire 2.9 percent.
Beginning in 2013, the health care legislation imposes an additional 0.9 percent surtax — but only on higher income households. The tax applies to income in excess of:
A single person’s wage and self-employment income over $200,000, or
the combined wage and self-employment income of a married couple exceeding $250,000.
“There is no employer match on the 0.9 percent,” says Chris Hesse, a tax partner with CliftonLarsonAllen. “This tax is entirely paid by the employee or the self-employed individual. There will be employer withholding, but if you are self-employed, you will need to build this into your quarterly tax estimates. And some joint filers will have less withheld than their combined 0.9 percent tax.”
Then again, I’m sure a lot of piss ants will say if you earn 200/250k, then you should pay more taxes. Some other piss ants will say it’s “just an incremental tax”…
all while not having to pay the tax themselves, and/or all while collecting a public pension…
Notice the fine print of these taxes. It taxes individual’s passive income. BUT if you conduct business in sort of way, you won’t be subject to it..Same old same old.
