Medicare Surtax
An additional Medicare tax on high-income wages and investment income.
High earners may owe an extra Medicare tax on wages and a 3.8% net investment income tax on certain investment income.
For deeper context, review the Net Investment Income Tax (NIIT) guide, the capital gains vs. ordinary income guide, and the taxes on investments guide. The surtax is easier to plan around when you understand your marginal tax rate and effective tax rate.
How sharper.tax Helps
sharper.tax detects whether your income puts you in range of the Additional Medicare Tax or the Net Investment Income Tax and factors those surcharges into every strategy recommendation. Sophisticated tax planning used to require a high-end CPA — we make it available for free.
Sources
The information above is educational and not tax advice.