According to IRC §1411 for tax years beginning January 1, 2013 certain trust and estates will be subject to an additional 3.8% on investment income if their MAGI exceeds the following thresholds.
The Medicare contribution tax for trusts and estates applies if the lesser of:
- Undistributed net investment income, or
2. The excess of AGI over the dollar amount at which the highest tax bracket for estates and trusts begins for the taxable year.
Exclusions
The Medicare contribution tax does not apply to trusts organized and operated exclusively for religious, charitable, scientific, literary or educational purposes; or for national/international amateur sports; or the prevention of cruelty of animals and children.