Question

Exercise 12-19 (Algorithmic) (LO. 7) Compute the additional Medicare tax for the following taxpayers. If required, round your answers to the neares a. Mario, who is single, earns wages of $303,200. His additional Medicare tax is $ 929 b. George and Shirley are married and file a joint return. During the year, George earns wages of $202,000, and S $303,000. Their additional Medicare tax is $ 2,295 V. c. Simon has net investment income of $52,680 and MAGI of $263,400 and files as a single taxpayer. Simon's additional Medicare tax is $ X. Feedback

tax question

Answer 1

Simon's Medicare tax is Nil. Because of Simon's not earning wages income. Simon's earn investment income.

So, on investment income no such additional medicare tax withhold.

Therefore, additional medicare tax for Simon's is Zero.