Question

Aliza Grajek is a self-employed nurse with 2017 gross income of $68,000 and taxable annual income (federal and state) of $55,000 after adjustments, exemptions, and deductions. Calculate her total 2017 income tax liability, including federal and FICA taxes.

Answer 1

Aliza Grajek's total 2017 income tax liability, including federal and FICA taxes, would be $6,134.50.

Step-by-step explanation:

To calculate Aliza Grajek's total 2017 income tax liability, we need to consider the federal income tax and FICA taxes. Let's start with the federal income tax. Based on Aliza's taxable annual income of $55,000, we can use the tax brackets to determine her federal income tax. The federal tax brackets for 2017 are as follows:

1. Up to $9,325: 10% tax rate
2. $9,326 to $37,950: 15% tax rate
3. $37,951 to $91,900: 25% tax rate
4. $91,901 to $191,650: 28% tax rate
5. $191,651 to $416,700: 33% tax rate
6. $416,701 to $418,400: 35% tax rate
7. Over $418,400: 39.6% tax rate

Since Aliza falls in the $0 to $9,325 bracket, her federal income tax would be $9,325 * 10% = $932.50.

Next, let's calculate the FICA taxes. The Social Security tax rate is 6.2% and the Medicare tax rate is 1.45%. Applying these rates to Aliza's gross income of $68,000:

Social Security tax = $68,000 * 6.2% = $4,216.

Medicare tax = $68,000 * 1.45% = $986.

Therefore, Aliza Grajek's total 2017 income tax liability, including federal and FICA taxes, would be $932.50 + $4,216 + $986 = $6,134.50.