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 CPE webinar with Q&A

Conducted on Tuesday, January 22, 2013

Recorded event now available

or call 1-800-926-7926
Program Materials

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
Anne Bushman
Tax Services Manager

She is a federal tax specialist for partnership clients at the firm, researching and providing advice on...  |  Read More

Mary B. Hevener
Mary B. Hevener

Morgan Lewis & Bockius

She focuses her practice on benefits provided to employees and independent contractors outside of qualified retirement...  |  Read More

Bigge, Stephen
Stephen J. Bigge, CPA

Keebler & Associates

Mr. Bigge focuses on developing comprehensive financial, estate and income tax analyses and wealth transfer techniques...  |  Read More

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