Medicare Special Wage Base This is the maximum amount of covered earnings on No Limit No Limit No Limit which Social Security hospital insurance taxes are paid. Note: The 7.65% employee rate is imposed on the taxable wage base of $118,500 in 2016. Earnings in excess of the FICA wage base are assessed only the Medicare portion of FICA. In the of the Medicare assessment are both For 2016, employee and employer portions 1.45%. self-employed taxpayers, the combined tax is 2.9%. High earners pay an additional 0.9% of Medicare tax on earnings in excess of the following thresholds: Threshold Amount Married Filing Jointly $250,000 Married Filing Separately $125,000 Other Taxpayers $200,000 The 0.9% additional tax applies only to the employee contribution to Medicare. For taxpayers over the threshold, the combined Medicare tax in 2016 is 3.8%. 2016 MEDICARE PREMIUMS 2015 2016 2014 Medicare Part B $104.90 $104.90 $121.80 Monthly Premium $147 $147 $166 Deductible Medicare Part A $411 $426 $407 Monthly Premium $1,288 $1,216 $1,260 Deductible Medicare Part B Medicare Part B enrollees with higher incomes also pay higher Part B premiums based on their incomes. The income-related Part B premiums for 2016 increased to $170.50, $243.60, $316.70, or $389.80, depending on the extent to which an individual income exceeds beneficiary’s $85,000 (or a income exceeds $170,000). married couple’s
Medicare Special Wage Base This is the maximum amount of covered earnings on which Social Security hospital insurance taxes are paid. No Limit No Limit No Limit Note: The 7.65% employee rate is imposed on the taxable wage base of $118,500 in 2016. Earnings in excess of the FICA wage base are assessed only the Medicare portion of FICA. In 2016, the employee and employer portions of the Medicare assessment are both 1.45%. For self-employed taxpayers, the combined tax is 2.9%. High earners pay an additional 0.9% of Medicare tax on earnings in excess of the following thresholds: Threshold Amount Married Filing Jointly $250,000 Married Filing Separately $125,000 Other Taxpayers $200,000 The 0.9% additional tax applies only to the employee contribution to Medicare. For taxpayers over the threshold, the combined Medicare tax in 2016 is 3.8%. 2016 MEDICARE PREMIUMS 2014 2015 2016 Medicare Part B Monthly Premium $104.90 $104.90 $121.80 Deductible $147 $147 $166 Medicare Part A Monthly Premium $426 $407 $411 Deductible $1,216 $1,260 $1,288 Medicare Part B Medicare Part B enrollees with higher incomes also pay higher Part B premiums based on their incomes. The income-related Part B premiums for 2016 increased to $170.50, $243.60, $316.70, or $389.80, depending on the extent to which an individual beneficiary’s income exceeds $85,000 (or a married couple’s income exceeds $170,000).
TAIFeb16Numbers.docx