What Is the Additional Medicare Tax?

The Additional Medicare Tax adds 0.9% to Medicare taxes on wages and self-employment income above $200,000 (single) or $250,000 (married filing jointly). Employers withhold it once your wages exceed $200,000 regardless of your filing status, so married couples may owe more at filing time. This tax is on top of the regular 1.45% Medicare tax everyone pays. Self-employed people also owe it on their share of self-employment income above the threshold. It's reported on Form 1040.