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The Medicare tax that is deducted from your paycheck pays for your Medicare Part A insurance, so that you'll be able to use it when you turn 65. Medicare Part A is the hospitaliztion portion of Medicare. Once you turn 65, you'll pay for Medicare Part B that will be automatically deducted from your Social Security check. For 2009, that amount is $96.40/month if you make less than $85000.00 per year. Medicare Part B is the medical/doctor's office portion of your Medicare.
Wiki User
∙ 15y ago
Wiki User
∙ 8y ago(SSB or SSDI Retirement Insurance Program, Survivors Insurance Program, Social Security disability insurance program, Supplemental Security Income (SSI) program, Medicare Program
Social Security benefits, including retirement, medical, disability (the persons and his family), "survivors, educational, retraining, etc,.
To pay the Old Age Survivor and Disability Insurance benefits to qualified taxpayers that have worked and had the qualifying earned income and reported the income and paid the social security and medicare tax amounts over the years as taxpayers are required to do.
The taxes that you are paying now for for the social security and medicare insurance program are being used to pay for the benefits that the current beneficiaries are receiving at this time and also some of the amount is being put into a trust fund that has some government assets for use in the future for your insurance benefits.
Wiki User
∙ 12y agoIt's used for medical care for Medicare beneficiaries: generally, persons over 65 and certain persons who are totally and permanently disabled as defined by Social Security regulations.
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What is the medicare tax used for?
Medicare tax is used to support the Medicare program, a healthcare program designed to provide basic health insurance for retired and disabled persons.
Can medicare tax be deducted from tax return?
I am not finding an answer to my question---Are the premiums on my medicare supplement tax deductable? Please help!
What is the Medicare tax rate?
The medicare tax amount that is withheld by the employer is 1.45 % of all earned income. And the employer matches the 1.45 % for a total of 2.9 % form the employee medicare tax. The self employed taxpayer pays 2.9 % for the medicare tax on all of the net profit from the business operation.
Will you pay medicare tax on your ups pension when you begin collecting it?
Medicare tax is paid on earned income.
What is the average Medicare tax for a senior male?
There is no tax. Once you are a senior and receiving medicare there is no tax. My parents get everything refunded every year.
Is there a medicare tax deduction?
No
Are IRA withdrawals subject to medicare tax?
IRA withdrawals are subject to neither Medicare nor Social Security tax.
What is the taxes for US?
Medicare tax is used to support the Medicare program, a healthcare program designed to provide basic health insurance for retired and disabled persons.
When and why would I need to pay medicare tax?
An employee in the United States that gets payment for services in the United States may have their wages applicable for Medicare tax. Usually, the employer tells the employee whether Medicare tax applies to him or her.
FICA includes which two separate taxes?
FICA includes two separate taxes: Social Security tax and Medicare tax. Social Security tax is used to fund retirement, disability, and survivor benefits, while Medicare tax pays for healthcare benefits for those aged 65 and older.
What is the purpose of Medicare tax?
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When did fica tax split into social security and medicare tax?
1996
