Final answer:
To find the amount Donald paid in Medicare and Social Security taxes combined, we calculate the Medicare tax and the Social Security tax separately. The Medicare tax is $1,800.35 and the Social Security tax is $7,709.80. The combined amount for Medicare and Social Security taxes is $9,510.15.
Step-by-step explanation:
To calculate the amount Donald paid in Medicare and Social Security taxes combined, we need to find the amount for each tax and add them together.
For the Medicare tax, we multiply Donald's salary ($124,300) by the tax rate (1.45%).
Medicare tax = $124,300 * 0.0145 = $1,800.35
For the Social Security tax, we have a maximum taxable income of $90,000. We multiply this limit by the tax rate (6.2%) to find the maximum tax amount.
Social Security tax = $90,000 * 0.062 = $5,580
Since Donald's salary ($124,300) exceeds the maximum taxable income, we subtract the maximum taxable income from his salary and multiply it by the tax rate to find the additional amount.
Social Security additional tax = ($124,300 - $90,000) * 0.062 = $2,129.80
The total Social Security tax is the sum of the maximum tax amount and the additional tax amount.
Total Social Security tax = $5,580 + $2,129.80 = $7,709.80
Finally, the combined amount for Medicare and Social Security taxes is the sum of the Medicare tax and the total Social Security tax.
Combined taxes = $1,800.35 + $7,709.80 = $9,510.15
Therefore, Donald paid a total of $9,510.15 in Medicare and Social Security taxes combined.