thanks for pointing that out. Obama care tax is meant for Healthcare and it is sort of extension of medicare (I think).
Lets say someone has only income is from work/wages-W2 income/earned income. That person pay 2.9% (1.45 + 1.45) Medicare Tax until 200/250/125 limit but once crosses that limit then this tax becomes 3.8% (0.9% increase). That 0.9% comes from tax payer not employer?
Q. Is now all of their income is subject to 3.8% because they have reached important milestone or income above threshold is subject to 3.8% and income below is subject to 2.9%
Now lets say some one only source of income is passive income like from stocks, dividends, capital gains (I am not sure about rental or royalities income etc). That person has NO Medicare tax until that person reaches 200/250/125 threshold.
That is my question. Now if you reaches threshold, does only income above threshold is subject to 3.8% tax or all of your income is now subject to 3.8% tax.
