What is the amount of Medicare contribution tax Kevin and Karen must pay on their income?

To determine the Medicare contribution tax that Kevin and Karen must pay on their income, it's critical to understand how the Medicare tax works. The Medicare contribution tax is generally assessed on income above a certain threshold, and for high earners, an additional 0.9% surtax is applied.

If Kevin and Karen's income exceeds the threshold (which for married couples filing jointly is typically $250,000), they would be subject to this additional tax on the income over that limit. The base Medicare tax rate is 1.45% on all earned income, and the additional 0.9% is applied to income that exceeds the threshold.

To reach the correct amount of $2,660, it implies that their taxable income calculated for Medicare purposes, when factoring in both the basic and additional rates, would lead to this total for the taxes owed.

This assessment allows us to calculate the precise amount based on their income level and ensure that both the regular Medicare tax and any applicable thresholds for the additional tax are considered when arriving at the final figure.