Enrolled Agent Exam [Part 1] 54, Additional Medicare Tax

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • The 0.9% Additional Medicare Tax applies to earned income over $200,000 for single filers and $250,000 for joint filers. • Employers use a universal $200,000 wage threshold to begin withholding, regardless of the employee's actual filing status or total income. • A tax liability can exist without any employer withholding, especially for married couples where each spouse earns under $200,000 but their combined income exceeds $250,000. • Form 8959 is used to calculate and report the Additional Medicare Tax liability with the taxpayer's Form 1040. • This tax is separate from and in addition to regular Medicare and self-employment taxes, and it is never deductible. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep