So you'd end up paying 1.45% on the first $200,000 and 2.35% on the rest. The 0.9% Medicare surtax is a recent change and is intended to help pay for health reform. Investment income taxes: Capital gains, dividends and interest represent unearned income..
The tuition and fees deduction sounds good on the surface; it offers up to a $4,000 deduction. This option is open even if you donât itemize deductions. But since the deduction is for the taxpayer, not the student, it may not be the most beneficial for taxpayers with more than one student in the family.
Once the tax liability is reduced to zero, any remaining credit will not be added to the refund. Tuition/Fees Deduction-The Tuition and fees deduction allows taxpayers to deduct a maximum of $4,000 for qualified students enrolled at an eligible educational institution.Taxpayers can only claim a deduction for the amounts they paid for the educational expenses.nce the tax liability is reduced to zero, any remaining credit will not be added to the refund. Tuition/Fees Deduction-The Tuition and fees deduction allows taxpayers to deduct a maximum of $4,000 for qualified students enrolled at an eligible educational institution.