Net Investment Income and Additional Medicare Tax
Effective Jan. 1, 2013, individual taxpayers are liable for a 3.8 percent Net Investment Income Tax
on the lesser of their net investment income, or the amount by which their modified adjusted gross income exceeds the statutory threshold amount based on their filing status.
The Net Investment Income Tax is separate from the new Additional Medicare Tax
, which also went into effect on January 1, 2013. You may be subject to both taxes, but not on the same type of income. The 0.9 percent Additional Medicare Tax applies to individuals' wages, compensation, and self-employment income over certain thresholds, but it does not apply to income items included in Net Investment Income.
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2016 Individual Tax Information
Employer Withholding Schedules