Our partner in the Tax and Wealth Planning Group Owen Knopping recently sent us the first draft of the New Medicare Tax Form (#8959). Although it is boldly stamped as a draft it is a useful tool to have when calculating the tax as it captures how the IRS sees the tax calculated.
The tax is in effect now and Form 8959 in its final version will be part of the package we will be getting in January when tax season begins. As of August 6, the calculation is set forth like this:
Caution: There will be another Form for investment earnings. Those are subject to the 3.8% tax.
More to follow.