New Hospital Insurance Tax of .9%

Last week I talked about the new 3.8% tax on investment income or unearned income. Earned income of wages and self employment income also gets hit by Obamacare. Beginning in 2013 there is a new tax of .9% on wages and self employment income for those single filers making over $200,000 or joint filers making over $250,000. For example, if you have a joint return with wages of $100,000 and self employment income of $500,000, the calculation of the tax would be as follows: .009 x ($100,000+$500,000-$250,000) = $3,150.