Question

In 2019 Lee began working as a nurse anesthetist with a taxable income of $142,545. The Medicare tax was 1.45% and the Social Security tax rate was 6.2% to the maximum income of $134,260 that year. How much did Lee pay in FICA taxes in 2019?

Answer 1

In 2019, Lee paid a total of $10,391.02 in FICA taxes, which includes Social Security tax on the maximum income of $134,260 and the Medicare tax on her entire taxable income of $142,545.

Step-by-step explanation:

The FICA taxes that Lee paid in 2019 as a nurse anesthetist can be calculated based on her taxable income of $142,545. The Social Security tax is capped at a certain wage limit, which was $134,260 for 2019. Therefore, she only pays Social Security tax on that capped amount at a rate of 6.2%. The Medicare tax does not have such a cap and is imposed at 1.45% on the entire income amount. To find the total FICA taxes paid:

• Social Security tax = 6.2% of $134,260
• Medicare tax = 1.45% of $142,545

Let's do the math:

• Social Security tax = 0.062 x $134,260 = $8,324.12
• Medicare tax = 0.0145 x $142,545 = $2,066.90

Total FICA taxes = Social Security tax + Medicare tax = $8,324.12 + $2,066.90 = $10,391.02