Ask a CPA

Individuals will owe the tax if they have Net Investment Income and also have modified adjusted gross income over the following thresholds:
Married Filing Jointly $250,000
Single, Head of Household or Qualifying Widower $200,000
Married Filing Separately $125,000

For individuals, the tax will be reported on, and paid with Form 8960 and on Form 1040.
For Estates and Trusts, the tax will be reported on, and paid with, the Form 1041.

No, but you may request that additional income tax be withheld from your wages.

You may be subject to both taxes, but not on the same type of income. The 0.9% 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

Additional Medicare Tax applies to wages and compensation above a threshold amount received after December 31, 2012 and to self-employment income above a threshold amount received in taxable years beginning after December 31, 2012.

No. There is no employer match for Additional Medicare Tax.

There are no special rules for nonresident aliens and U.S. citizens living abroad for purposes of this provision.
Wages, other compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold.

Yes. Individuals liable for Additional Medicare Tax will calculate Additional Medicare Tax liability on their individual income tax returns on Form 8959 and on Form 1040.
Individuals will also report Additional Medicare Tax withheld by their employers on their individual tax returns.
Any Additional Medicare Tax withheld by an employer will be applied against all taxes shown on an individual’s income tax return, including any Additional Medicare Tax liability.

An individual will owe Additional Medicare Tax on wages, compensation, and/or self-employment income (and that of the individual’s spouse if married filing jointly) that exceed the applicable threshold for the individual’s filing status.
For married persons filing jointly the threshold is $250,000, for married persons filing separately the threshold is $125,000, and for all others the threshold is $200,000.

Yes, tips are subject to Additional Medicare Tax, if, in combination with other wages, they exceed the individual’s applicable threshold.
Tips are subject to Additional Medicare Tax withholding, if, in combination with other wages paid by the employer, they exceed the $200,000 withholding threshold.