Hera earned $175,000 salary in 2016. Her husband, Zeus, earned $100,000 salary in 2016. Hera and Zeus file a joint tax return. How much FICA taxes will they owe in 2016?

Question

Quizplus · Accepted Answer

The cap on Social Security taxes applies to each individual taxpayer. Thus, Hera and Zeus will owe ($118,500 × 6.2% × 2 = $14,694) in Social Security taxes. Their Medicare tax liability is determined jointly based on their combined salaries of $275,000 as follows: (sum of (a) $250,000 × 1.45% = $3,625 + (b) $25,000 × 2.35% = $587.50, which equals $4,212.50). Thus, Hera and Zeus will owe $18,906.50 in FICA taxes ($14,694 Social Security tax + $4,212.50 Medicare tax).

Hera Earned $175,000 Salary in 2016