Higher income earners will pay more in taxes this year
UNDATED (AP) — There are no new taxes for most taxpayers this year, with a key exception for higher income earners.
It’s the Medicare tax for taxpayers earning more than $200,000, or more than $250,000 for married couples filing a joint return. H&R Block senior tax adviser Richard Gartland says “they’re going to be paying an additional point-nine percent.”
And while employers withhold that tax for individuals earning more than $200,000, Gartland there’s “a potential trap for married couples.” If neither the husband nor wife makes $200,000 but together they make in excess of $250,000, “that tax will not have been withheld and they’ll have to pay it at the time of filing.”