Farms and the Affordable Care Act
Posted: 1/9/2014 |
Effective January 1, 2013, there are two new Medicare taxes that will affect higher-income farmers. The Net Investment Income Tax (NIIT) is a new 3.8% tax on certain types of passive income. Wages, self-employment income and other sources of income subject to Medicare tax may be subject to the new Additional Medicare tax of 0.9%. Whether these taxes will affect a farmer depends upon the farmer’s tax filing status and level of adjusted gross income(AGI) for the year. The income thresholds for each filing status are as follows.
Source: Farmdoc / University of Illinois / Marc Lovell