Additional Medicare Tax (US Payroll & Self-Employment Tax Navigator)

US Payroll & Self-Employment Tax Navigator

US Payroll & Self-Employment Tax Navigator

Self-Employment Tax, Excess Social Security Tax, Additional Medicare Tax. Diagnose complex tax issues and simulate savings strategies all in one place.

Calculate your Self-Employment Tax based on net business profit and see the impact of various deductions.

Income & Expenses (2025 Basis)

Savings Strategies (AGI Deductions)

SE Tax Calculation Results

Schedule C Net Profit:$0
Deductible 1/2 of SE Tax:$0
Total Self-Employment Tax:$0

Did you receive a W-2 from two or more employers? Check for overpaid Social Security tax and calculate your refundable credit.

W-2 Information (2025 Basis)

2025 Max Social Security Tax:
(based on wage base limit of )

Refund Calculation Results

Your Refundable Credit

$0.00

Calculate your Additional Medicare Tax liability as a high-earner and see the effect of savings strategies.

Income Information

Income can be linked automatically from the SE Tax simulator.

Additional Medicare Tax (AMT) Results

Estimated Additional Medicare Tax (0.9%)

$0.00

Threshold: $0

Comprehensive Information & FAQ

Self-Employment (SE) Tax Key Summary

Composition: Social Security (12.4%) + Medicare (2.9%) = 15.3%.

Calculation: (Gross Revenue - Business Expenses) × 92.35% = Taxable Income.

Key Deduction: Half of the SE Tax you pay is deductible from your AGI for income tax purposes.

Strategy: Maximizing legitimate business expenses is the most effective way to reduce net earnings. Retirement plans like a Solo 401(k) or SEP IRA are powerful tools for lowering AGI.

How to Get an Excess Social Security Tax Refund

Cause: Occurs when you have W-2 income from two or more employers, and your total withheld Social Security tax exceeds the annual maximum.

Solution: Claim the excess amount as a "refundable credit" on Form 1040, Schedule 3. This reduces your tax or increases your refund.

Caution: If a single employer mistakenly withholds too much, you cannot claim a credit; you must ask the employer for a refund.

What is Additional Medicare Tax (AMT)?

Who it affects: High-income earners who exceed certain income thresholds based on their filing status.

Tax Rate: An additional 0.9% on income above the threshold (with no employer match).

Thresholds:

  • Married Filing Jointly (MFJ): $250,000
  • Single, Head of Household (HOH): $200,000
  • Married Filing Separately (MFS): $125,000

The Withholding Problem: Employers only start withholding for AMT when an individual's wages exceed $200,000. This can lead to an underpayment for married couples. You must manage your estimated tax liability based on your total household income.

This application is for informational and educational purposes only and does not constitute legal or tax advice.
Always consult with a qualified tax professional for your specific situation.

COCOMOCPA

Financial Controller / CPA

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