Bob's not my name wrote:http://thefinancebuff.com/obamacare-3-8-medicare-tax-and-alternative-minimum-tax-amt.html
By the way, your statement isn't correct. The 0.9% tax is on taxable wages over $250,000, not total income. For example, a couple with $260,000 wages and $20,000 investment income will probably not pay any of the 0.9% tax, since their pre-tax insurance premiums and FSA contributions can get their wages under $250,000, or very close to it.
As for the 3.8% tax, it is not on unearned income, it's on certain categories of investment income. Muni bond interest is excluded. Furthermore, the threshold here is not total income or wages, it is AGI. The example couple above would probably not pay any of the 3.8% tax, either, because 401k contributions, FSA contributions, and pre-tax health insurance premiums could easily drop their AGI to under $250,000.
Biil McNeal wrote:Have rules been released that clarify if the 3.8% surcharge is absorbed by people paying AMT (so they pay less AMT) or do both regular and AMT increase?
Biil McNeal wrote:Thanks tfb. So the 3.8% unearned income surtax will hit everyone above $250,000, regardless of AMT status.
Biil McNeal wrote:Top of page 4 of this US Trust document says: "THE SURTAX IS IN ADDITION TO THE
ALTERNATIVE MINIMUM TAX."
http://www.ustrust.com/Publish/Content/ ... Surtax.pdf
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