| What is this TAXSPEAK name “THRESHOLD” mean ? | |
| In 2013 there are additional Medicare Taxes of 9/10 of 1% imposed on wages, and sell employment compensation for those whose employment amounts are above a THRESHOLD amount. | |
| FILING STATUS | Â THRESHOLD AMOUNT |
| Married Filing Jointly | Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 250,000 |
| Married Filing Separate | Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 125,000 |
| Single | Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 200,000 |
| Head of Household | Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 200,000 |
| Qualifying Widow(er) | Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 200,000 |
| So if your tax status is above the THRESHOLD AMOUNT, your Medicare Tax will be higher, otherwise no change from your current status. | |
| There is also a new “Net Investment Income Tax” of 3.8 % for those whose “Modified Adjusted Gross Income” (MAGI) is as follows: | |
| FILING STATUS | Â THRESHOLD AMOUNT |
| Married Filing Jointly | Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 250,000 |
| Married Filing Separate | Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 125,000 |
| Single | Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 200,000 |
| Head of Household | Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 200,000 |
| Qualifying Widow(er) | Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 200,000 |
| Certain Estates and Trusts, with undistributed investment income | Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 11,950 |
| The actual calculation of the new medicare and the net investment income tax is more complex than determining whether something is above a Threshold Amount. However, the concept of using Threshold Amounts in calculating taxes is found throughout the Internal Revenue Code. Another way to express “THRESHOLD AMOUNT” is to say “more than” . | |