Medicare payroll tax – Putnam Wealth Management

Don’t let the Medicare payroll tax surprise your clients

Before tax season begins, high-income clients may be seeking clarity on the new taxes introduced this year as part of the federal health-care reform law. Some clients may be subject to the new 3.8% surtax on net investment income as well as an additional 0.9% Medicare payroll tax. These taxes apply to individuals with income

Taxes

Don’t get tripped up by the new tax thresholds

While the new federal tax law brought good news for most taxpayers, there may be confusion for others trying to determine when certain tax provisions apply. The tax reform items are linked to income thresholds with different definitions of “income.” It is important for clients to understand the impact of the legislation on their 2013