If you make over $200,000 your FICA tax rate for 2013 will soon increase. That’s because under health care legislation the Medicare portion of the FICA tax will increase for wealthy taxpayers. Instead of paying a flat 1.45%, wealthy taxpayers would pay 2.35%.
Wealthy is defined here as a single filer making over $200,000 and married filing jointly a total of $250,000. This is part of health care reform signed into action by the Obama administration.
Also going into effect will be an additional Medicare tax on the wealthy taxpayers. This will go into effect January 1, 2013. The additional Medicare tax will be a 3.8% tax on investment income for the same wealthy taxpaypers. Again, that’s single filers with an Adjusted Gross Income (AGI) over $200,000 and married filing jointly with an AGI over $250,000.