Surtax


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Surtax

An additional charge on an item that is already taxed.

A surtax is a tax on a tax. For example, if a person pays one hundred dollars of tax on one thousand dollars of income, a 5 percent surtax would amount to an additional five dollars.

References in periodicals archive ?
The ACA Medicare surtax affects taxpayers who have wages, similar types of compensation and self-employment over a threshold amount.
A national surtax on real property would discourage local politicians to interfere in the implementation of the tax.
If companies are not permitted to pass on and through to the policyholder either or both the surtax or the "loan" costs, then these provisions of the Act must fail--and with the fall of either the surtax or the "loan" sections, the funding necessary to carry out the paying off of the JUA deficit and the replacement of the JUA are severely impeded.
However, a large lump sum payment at the end of the 5 years could cause the higher tax rate and surtax to apply to the seller in that year - so close attention needs to be paid to the tax consequences when structuring the installment agreement.
The surtax will not apply because they have no net investment income.
8% Medicare surtax is levied on the lesser of net investment income or the excess of modified adjusted gross income (MAGI) over the thresholds of $250,000 (married filing jointly) and $125,000 (married filing separately).
He said if the town goes for a 3 percent surtax, there is no guarantee that down the road the state will match it dollar-for-dollar, so that makes the proposal "sketchy" at best.
In a keen bit of detective work, Kiely seems to have uncovered a morsel of good news from any potential surtax high earners might pay: counteracting the Alternative Minimum Tax.
However, a corporation is allowed to accumulate at least $250,000 without being subject to this surtax.