At what income level does the Medicare surtax begin to apply?

The Medicare surtax, officially known as the Additional Medicare Tax, applies to high-income earners in order to fund Medicare. For individuals, the surtax begins to apply to wages and self-employment income that exceed $200,000. For married couples filing jointly, the threshold is set at $250,000.

Since the question refers to the income level at which the surtax begins to apply, the correct choice is the income level of $250,000. This means that any income earned above this amount is subject to an additional 0.9% tax. The designation of this specific threshold is crucial as it delineates those whom the tax aims to target based on higher earning profiles, thus ensuring that the funding for Medicare is supplemented by those who can afford to contribute more.

This understanding of the income thresholds is vital for effective tax planning and financial management, especially for higher earners, as it directly impacts their take-home pay and tax liabilities.