Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
The new 3.8% Medicare tax appears to apply only when joint filers have an AGI above $250K. If I am reading things correctly, in computing the $250K, you can exclude income from IRAs, pension plans, and the like. My question is: Are SS payments included when coming up with the $250K threshhold? If IRA distributions aren't, then why would SS? Thanks.
That's not quite right.

The items you listed are excluded from investment income, and not subject to the tax. But they are NOT excluded in determining modified AGI, in determining whether you're over the $250K threshold.

"Modified AGI", for this purpose, means AGI, PLUS the foreign earned income exclusion, less any deductions related for foreign earned income.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.