Hera earned $175,000 salary in 2017. Her husband, Zeus, earned $100,000 salary in2017. Hera and Zeus file a joint tax return. How much FICA taxes will they owe in2017?

Question

Quizplus · Accepted Answer

Both Hera and Zeus are subject to the FICA tax, which consists of Social Security tax at a rate of 6.2% and Medicare tax at a rate of 1.45%. The Social Security tax is only applied to a maximum amount of annual earnings, which was $127,200 in 2017. However, both Hera and Zeus earn more than this amount so their entire salaries are subject to the FICA tax. 
Hera's FICA tax = (175,000 x 0.062) + (175,000 x 0.0145) = $12,842.50
Zeus's FICA tax = (100,000 x 0.062) + (100,000 x 0.0145) = $7,142.50
Total FICA tax = $12,842.50 + $7,142.50 = $19,985

Hera Earned $175,000 Salary in 2017