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.
1 Tuition and fees deduction â adjustment to income (above-the-line deduction) up to $4,000 of tuition for higher education. 2  Deduction for state and local general sales tax â an itemized deduction (Schedule A) for sales tax in lieu of state income tax. Tuition and fees deduction â adjustment to income (above-the-line deduction) up to $4,000 of tuition for higher education. 2  Deduction for state and local general sales tax â an itemized deduction (Schedule A) for sales tax in lieu of state income tax.