What is the percentage of the excess income over the threshold evaluated for the Additional Medicare Tax?

The Additional Medicare Tax is a provision that applies to higher-income earners, imposed on earned income exceeding a specified threshold. The key percentage rate associated with this tax is 0.9%. This means that once an individual's earned income surpasses the threshold established by the IRS—$200,000 for single filers or $250,000 for married couples filing jointly—an additional tax of 0.9% is calculated on the amount of income surpassing that threshold.

This tax is intended to help fund Medicare and is exclusive to certain income brackets, thereby not affecting the majority of wage earners. The correct value reflects the rate at which that excess income is taxed under the Additional Medicare Tax guidelines, ensuring high earners contribute more towards Medicare funding.

The other percentages listed do not align with the established rate for the Additional Medicare Tax, making those choices incorrect in the context of the question. Therefore, understanding that 0.9% is the specific rate imposed on income above the threshold is crucial for accurately addressing tax obligations related to this provision.