The IRS has released final regulations on the new 0.9% additional Medicare tax that is imposed on high wage earners starting on Jan 1, 2013. The tax applies to wages, compensation, and self-employment income above a threshold amount. A newly compiled Q&A page on the additional Medicare tax is available on the IRS website, and it provides comprehensive guidance on the topic including thresholds and multiple examples.
The additional Medicare tax is one of the many tax changes that are happening in the 2013 tax year. If you haven’t yet done so, please contact us regarding your 2013 year end tax planning.