Mary and Ian, a married couple who file a joint return, collectively earn $270,000 in wages, and have $80,000 of net investment income, in 2013. Their modified adjusted gross income is $350,000. Mary and Ian will incur a 3.8% tax on the lesser of their (1) $80,000 of net investment income or (2) $100,000 of modified adjusted gross income in excess of the $250,000 threshold for married taxpayers filing jointly. Thus, they will incur a $3,040 (3.8% x $80,000) unearned income Medicare contribution tax.
