2013 Medicare Tax Increases: New Issues for Tax Return Preparers

Tackling the Net Investment Income Tax and Surtax on Wages and Self-Employment Income

Recording of a 110-minute webinar with Q&A

Conducted on Tuesday, January 22, 2013
Recorded event now available

This webinar will improve tax return preparers' familiarity with issues involving two new Medicare surcharge tax increases for high income earners effective Jan. 1, 2013. The panel will discuss the 3.8% Medicare surcharge on investment income and .9% Medicare surtax on wages and self-employment income.


The 3.8% surcharge is assessed on investment income and capital gains and is calculated differently for individuals than for trusts and estates. Individuals whose income is above a threshold amount will pay an additional Medicare surtax of .9%, so the top Medicare tax rate will be 2.35% (1.45% plus .9%) for wages over the threshold.

Selecting the appropriate filing status, properly computing the tax, and understanding the definition of net investment income could have a significant impact on tax obligations. The IRS has issued proposed guidance, but will not release final regulations until next spring.

Listen as our authoritative panel reviews the new Medicare surcharge rules and offers guidance in understanding the definition of net investment income. The panel will focus on selection of the filing status, outline ways to compute the tax, and discuss the Medicare surtax.


  1. Net investment income tax
    1. Definition of net investment income
    2. Computing the tax
    3. Filing status selection implications
  2. 9% Medicare surtax on wages and self-employment income
    1. Issues for employers
    2. Calculations
    3. IRS guidance


The panel will review these and other key questions:

  • What complexities should tax preparers be cognizant of with respect to the new taxes?
  • What is included in net investment income?
  • What impact could the selection of filing status have on the tax calculations?
  • Can individuals work with their employers to arrange for withholding of the additional Medicare taxes, if the employees' wages might not have triggered an automatic withholding threshold?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.

Upon completing this seminar, you will have increased knowledge about the new Medicare surcharge rules and a better understanding of the definition of net investment income and ways to compute the tax.


Anne Bushman, Tax Services Manager
McGladrey, Champaign, Ill.

She is a federal tax specialist for partnership clients at the firm, researching and providing advice on partnership-related issues for regional offices. She previously worked at Deloitte Tax with closely-held businesses and high-net-worth individuals.

Mary B. Hevener, Partner
Morgan Lewis & Bockius, Washington, D.C.

She focuses her practice on benefits provided to employees and independent contractors outside of qualified retirement plans. She advises large U.S. and multinational companies on minimizing payroll taxes and maximizing corporate deductions with respect to worker benefits. She has been involved in tax litigation involving income tax withholding and FICA taxation of tax-qualified stock options.

Stephen J. Bigge, CPA, Partner
Keebler & Associates, Green Bay, Wis.

Mr. Bigge focuses on developing comprehensive financial, estate and income tax analyses and wealth transfer techniques including FLP, GRATS, CRTs, ILITs and IDGTs.  He specializes in estate, gift and retirement planning, charitable gift planning, as well as trust and estate administration. Mr. Bigge is also experienced in providing tax planning for individuals, trusts and flow-through entities and is a frequent writer for Taxes Magazine.


On-Demand Seminar - Audio Recording

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Note: Self-study CPE and EA credits are not offered on on-demand webinars.

On-Demand Seminar Audio $69.00

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Recorded Event

Includes full event recording plus handouts.

Note: Self-study CPE and EA credits are not offered on recorded events.

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Recorded Audio Download (MP3) $69.00

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DVD (Slide Presentation with Audio) $69.00 plus $9.45 S&H

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Program Materials

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Program Materials

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RTRP Credit

Strafford is an IRS approved continuing education provider and this course is approved for 2 tax return preparer credit hours (tax law updates).

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Customer Reviews

The presentation material provided by the speakers was well in-line with the subject matter and will be helpful when referencing at a later date.

Rebecca Warren

Wall, Einhorn & Chernitzer, CPAs & Advisors

The webinar provided good handouts that could be used later for reference material.

Tyler Smith


I liked that I was able to toggle between the materials and the live presentation and that there were three experts available for questions.

Vaike Broderick

Eucalyptus Associates

The speakers had a very good knowledge of their subject matter.

Johanna C Smith

Woodcock & Associates

I appreciated the ability to submit questions in advance via email.

Carol Cullinan

Desmond & Ahern

or call 1-800-926-7926

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or call 1-800-926-7926

CPE Credit

Strafford is a NASBA CPE sponsor and our live webinars qualify for CPE credits. They offer you a high quality, cost effective, and convenient CPE option, with no lost travel time or expenses.