Question

Melody and Todd are married and have employee wages of $250,000 each in 2019. They have no other income. How much additional 0.9% Medicare tax will Melody and Todd have to pay or receive as a refund when they file their 2019 income tax return?

	a.	$900 will be refunded with their return.
	b.	$3,600 will be due with their return in addition to amounts withheld.
	c.	$1,350 will be due with their return in addition to amounts withheld.
	d.	$1,350 will be refunded with their return.

The 0.9 percent Medicare tax applies to:

	a.	Tax exempt income
	b.	IRA distributions
	c.	Earned income
	d.	Gain on the sale of a principal residence

The 3.8 percent ACA Medicare tax does not apply to:

	a.	Wages
	b.	Interest
	c.	Capital gains
	d.	Dividends

Tom, age 13, is claimed as a dependent by his parents. Tom has unearned income of $3,400 and $300 of income from mowing lawns in the neighborhood. If the first $2,600 of Tom's net unearned income is taxed at 10%, what is Tom’s 2019 income tax liability?

	a.	None of these
	b.	$260
	c.	$370
	d.	$0
	e.	$459

Answer 1

1. c. $1,350 will be due with their return in addition to amounts withheld.

2. c.Earned income

3. a.Wages

4. e. $459