3.8% Medicare Tax

News & Analysis as of

Understanding the Additional Medicare Tax and Medicare Surtax on Net Investment Income

Over the past year, there has been a lot of debate about the impact of the 0.9% Additional Medicare Tax and the 3.8% Medicare surtax on net investment income ("surtax") , but taxpayers may not have paid much attention to the...more

The New 3.8-Percent Tax Applies To Trusts And Estates

As we noted in a prior Estate Planning Update, 2013 brought with it a new 3.8-percent Medicare Contribution Tax on net investment income (interest, dividends, annuities, royalties, rents, capital gains, and passive activity...more

3.8% Medicare Tax on Net Investment Income

Beginning in 2013, Section 1411 of the Internal Revenue Code imposes a 3.8% “net investment income tax” (“NIIT”) on the net investment income (a specifically defined term) of individuals, estate and trusts that have income...more

Insight on Estate Planning - June/July 2013

In This Issue: - New 3.8% Medicare contribution tax: Do you know how to reduce or eliminate your liability? - Estate planning for adopted children and stepchildren - Shipping your trust over the state line to...more

Insight on Estate Planning - June/July 2013: New 3.8% Medicare contribution tax - Do you know how to reduce or eliminate your...

One of the funding mechanisms for health care reform is a new 3.8% Medicare contribution tax on net investment income (NII) going into effect this year. The tax applies to higher-income individuals as well as to trusts and...more

Tax Planning for the “New Normal”

Effective January 1, 2013, the American Taxpayer Relief Act of 2012 (“ATRA”) was enacted into law, finally settling years of debate over the fate of the Bush era tax cuts. On the same day, the 3.8% Medicare Tax on net...more

Obamacare Taxes, And Sales Of Partnership And Subchapter ‘S’ Interests

Have you given any thought to how Obamacare’s new 3.8% tax on investment income and gains will apply to sales of interests in partnerships and Subchapter S corporations? No, I didn’t think so....more

Real Estate Professionals Navigating The New 3.8% Medicare Tax

With a new year comes a new beginning. While New Year’s Day is typically viewed as a chance to start fresh and make changes in our personal lives, for many people New Year’s Day in 2013 took a different tone. Instead of...more

What To Expect From The Affordable Care Act In 2013

On March 23, 2010, President Obama signed into law the health care reform bill, the Patient Protection and Affordable Care Act. This legislation, along with the Health Care and Education Reconciliation Act of 2010, makes...more

Recent tax law changes of 2013

On January 2, 2013, President Obama signed the American Taxpayer Relief Act of 2012 into law. Summarized below are highlights of those and other changes to Federal tax laws affecting income, payroll, gift and estate, and...more

Wheel Of Pain

U.S. wage earners are feeling the pain this week as they receive smaller paychecks due to the elimination of a 2% tax break on social welfare taxes under the recent tax act. A new 3.8% tax is also imposed on the investment...more

President Obama Signs "Fiscal Cliff" Legislation into Law

As you likely have heard, the President signed the American Taxpayer Relief Act (H.R. 8) (the "Act") on January 2, 2013. The Act, popularly known as the "fiscal cliff" legislation, permanently extends the Bush era tax cuts...more

Fiscal Cliff Deal Extends $5 Million Estate and Gift Tax Credit and Generation-Skipping Transfer Tax Exemption, but Increases Tax...

The bill passed by Congress on January 1, 2013, to avoid the “fiscal cliff,” which is expected to be signed into law by President Obama shortly, permanently extends the favorable gift, estate and generation-skipping transfer...more

Obamacare – Will the New Taxes Impact Me?

Political debate for the past two years has focused on the future of the Patient Protection and Affordable Care Act, more recently called “Obamacare,” and the taxes enacted by Congress to help pay for it. With the national...more

2013 Brings New Taxes to High Income Taxpayers

The Patient Protection and Affordable Care Act (sometimes called “Obamacare”) comes with two new taxes for higher income taxpayers beginning on January 1, 2013: (i) a 3.8 percent Medicare contribution tax on net investment...more

Perspectives - Fall 2012 | Volume 3, Edition 2: An Executive Compensation, Benefits & Human Resources Law Update

In This Edition: - Year-end Deadline for Correcting Section 409A Deferred Compensation Arrangements That Condition Payment on an Employee Release or Covenant: By December 31, 2012, all deferred compensation...more

The Season of Giving: The “Fiscal Cliff” Coming to the Estate and Gift Tax Laws #EstatePlanningAttorney

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (“2010 Act”), was signed into law by President Obama on December 17, 2010. This Act provided a two year fix to the existing estate and gift...more

IRS Releases Guidance For Employers and Others on the 2013 Medicare Taxes under the Affordable Care Act

On November 30, 2012, the Internal Revenue Service ("IRS") released proposed regulations and two sets of frequently asked questions implementing two new Medicare taxes under the Patient Protection and Affordable Care Act...more

Consider Taking Advantage of Opportunities in 2012 – Your Taxes May Rise in 2013

As of this writing, it’s difficult to speculate as to what U.S. income tax rates will be in the year 2013. This has become especially apparent due to the effect of the so-called “fiscal cliff” and the results of the November...more

2013 Expiring and Changing Employee Tax Provisions

With the fiscal cliff approaching in 2013, several favorable tax provisions affecting individuals and businesses are set to expire. Given this uncertainty, employers must prepare for changing payroll taxes and new limits on...more

McNees Insights - Fall 2012

In This Issue: Year-End Tax Planning - Year-end planning is a bigger challenge this year than in past years because, unless Congress acts, tax rates will go up next year, many more individuals will be snared by...more

Preparing for the 3.8% Medicare Surtax on Net Investment Income

The Patient Protection and Affordable Care Act of 2010 (Affordable Care Act) institutes a new 3.8 percent Medicare surtax on net investment income effective January 1, 2013. In addition, absent congressional action to extend...more

New 3.8% Medicare Tax on Investment and Unearned Income Beginning in 2013

Starting January 1, 2013, a new 3.8% Medicare tax will apply to the investment and “unearned income” of individuals, trusts and estates. The tax is intended to apply to income exempt from the regular FICA or self-employment...more

Rappelling Down the Fiscal Cliff – Strategies for Cushioning the Fall – Part II

A. Overview - Part I of this series focused on the impact of impending tax increases following the Presidential Election for corporate executives and salaried professionals. Part II of the series will focus on...more

Rappelling Down the Fiscal Cliff – Strategies for Cushioning the Fall – Part I

Ready, set, go! Following the Presidential election last night, the race is on for year-end tax planning and bracing for the fall off the fiscal cliff. While no one can tell exactly what the tax outcome will be after...more

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