In describing FICA taxes, which (if any) of the following statements is incorrect?
A)The base amounts for 2020 probably will increase from the 2019 amounts.
B)The base amounts for the Social Security and Medicare portions are the same.
C)If both spouses work, excess FICA taxes need not result.
D)Excess FICA taxes can be claimed as an income tax credit.

Question

Quizplus · Accepted Answer

The base amounts for the Social Security and Medicare portions are not the same. The Social Security tax has a wage base limit, while Medicare tax does not have a wage base limit and applies to all earned income.

In Describing FICA Taxes, Which (If Any) of the Following