Hera earned a $175,000 salary in 2020. Her husband, Zeus, earned $100,000 salary in 2020. Hera and Zeus file a joint tax return. How much in FICA taxes will they owe in 2020?

Question

Quizplus · Accepted Answer

FICA taxes include Social Security and Medicare taxes. The Social Security tax rate is 6.2% on income up to $137,700 (2020 limit), and the Medicare tax rate is 1.45% on all income. Hera's Social Security tax is $8,537.40 (6.2% of $137,700), and Zeus's is $6,200 (6.2% of $100,000). Their combined Medicare tax is $3,987.50 (1.45% of $275,000). Total FICA taxes = $8,537.40 + $6,200 + $3,987.50 = $18,724.90, which rounds to $18,950.

Hera Earned a $175,000 Salary in 2020