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Sagot :
Mr and Mrs. Bolt unearned income medicare contribution tax when they want to report the joint return of $267,500 agi, which includes $13,300 net investment income is $505 so the answer is C.
What is joint return?
A joint return is a tax return filed with the Internal Revenue Service (IRS) on the new, simplified from 1040 by two married taxpayers whose filing status is married filing jointly or by a widowed taxpayer whose filing status is Qualifying Widow.
It is not mean that IRS wants everyone to get married by filing joint return report, because even though a married couple can report the return individually. Basically it's just a way to make the report simpler by filing a joint return report for married couple. It will take lesser steps to make a report but with terms and conditions applied.
Now, we want to calculate Mr. and Mrs. Bolt's unearned income medicare contribution tax as follows :
Couple's unearned income medicare tax = net investment income * rate of medicare contribution
Where
rate of medicare contribution is 3.8% (which the government has determined flat medicare surtax on net investment income for married couples who earn more than $250,000 of adjusted gross income (agi)
Now, let's get back to the formula
Couple's unearned income medicare tax = $13,300 * 3.8%
= $505 (rounded)
Therefore, Mr. and Mrs. Bolt unearned income medicare contribution tax is $505 and the answer is C.
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