Hera earned $175,000 salary in 2018. Her husband, Zeus, earned $100,000 salary in 2018. Hera and Zeus file a joint tax return. How much FICA taxes will they owe in 2018?

Question

Quizplus · Accepted Answer

The cap on Social Security taxes applies to each individual taxpayer. Thus, Hera will owe ($128,400 x 6.2% = $7,961) and Zeus will owe ($100,000 x 6.2% = $6,200) totaling $14,161 in Social Security taxes. Their Medicare taxes liability is determined jointly based on their combined salaries of $275,000 as follows: (sum of (a) Medicare tax, $275,000 x 1.45% = $3,988 + (b) additional Medicare tax, $25,000 x 0.9% = $225, which equals $4,213). Thus, Hera and Zeus will owe $18,374 in FICA taxes ($14,161 Social Security tax + $3,988 Medicare tax + $225 additional Medicare tax).

Hera Earned $175,000 Salary in 2018