Kyle Struck's filing status is single, and he has earned gross pay of $2,360. Each period he makes a 403(b) contribution of 8% of gross pay; and makes a contribution of 2% of gross pay to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $199,800. Social Security tax = $0.00 Medicare tax = $ Please explain how the problem is solved?

Kyle Struck's filing status is single, and he has earned gross pay of $2,360. Each period he makes a 403(b) contribution of 8% of gross pay; and makes a contribution of 2% of gross pay to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $199,800. Social Security tax = $0.00 Medicare tax = $ Please explain how the problem is solved?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter13: Tax Credits And Payment Procedures

Section: Chapter Questions

Problem 30P

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Darrell is an employee of Whitneys. During the current year, Darrells salary is 136,000. Whitneys net self-employment income is also 136,000. Calculate the Social Security and self-employment taxes paid by Darrell and Whitney. Write a letter to Whitney in which you state how much she will have to pay in Social Security and self-employment taxes and why she owes those amounts.
Lisa records nonrefundable Federal income tax credits of 65,000 for the year. Her regular income tax liability before credits is 190,000, and her TMT is 150,000. a. What is Lisas AMT? b. What is Lisas regular income tax liability after credits?
Arthur Wesson, an unmarried individual who is age 68, reports taxable income of 510,000 in 2019. He records positive AMT adjustments of 80,000 and preferences of 35,000. Arthur itemizes his deductions, and his regular tax liability in 2019 is 153,694. a. What is Arthurs AMT? b. What is the total amount of Arthurs tax liability? c. Draft a letter to Arthur explaining why he must pay more than the regular income tax liability. Arthurs address is 100 Colonels Way, Conway, SC 29526.
Precision Labs has two employees. The following information was taken from its individual earnings records for the month of September. Determine the missing amounts assuming that the Social Security tax is 6.2 percent, the Medicare tax is 1.45 percent, and the state income tax is 20 percent of the federal income tax. Assume that the employees are married and have one withholding allowance. All earnings are subject to Social Security and Medicare taxes. Round amounts to the nearest penny.
Lauren Buffet is concerned after receiving her weekly paycheck. She believes that her deductions for Social Security, Medicare, and federal income tax withholding (FIT) may be incorrect. Larren is paid a salary of $5,800 weekly. She is married, filing jointly and prior to this payroll check has total earnings of $ 145,050. What are the correct deductions for Social Security, Medicare, and federal income tax withholding (FIT)? Assume a rate of 6.2% on $147,000 for Social Security and 1.45% for Medicare.
Kyle Struck's filing status is single, and he has earned gross pay of $2,340. Each period he makes a 403(b) contribution of 7% of gross pay; and makes a contribution of 2.5% of gross pay to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $199,100. Medicare Tax _______ Incorrect answer: 52.55
Jacob Finney's filing status is single, and he has earned gross pay of $1,240. Each period he makes a 403(b) contribution of 8% of gross pay and makes a contribution of 0.80% of gross pay to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $132,100. Social Security tax = $ 49.60 Medicare tax = $ 184.69
Brian Bruin, single, claiming one exemption, has cumulative earnings before this biweekly pay period of $126,200. He is paid $1,920 this period. Calculate Brian Bruin's net pay. The FICA tax rate for Social Security is 6.2% on $127,200, Medicare is 1.45%, state income tax rate is 5%, and health insurance is $37. (Click the icon to view the Single Persons - Biweekly Payroll Period federal income tax withholding table.) Calculate Brian Bruin's net pay. (Round to the nearest cent.) Gross pay 1,9200.00 FICA OASDI 62.00 FICA medicare 27.84 State income tax 96.00 Health insurance 37.00 Federal income tax Net pay
Stephen Belcher's filing status is single, and he has earned gross pay of $1,840. Each period he makes a 401(k) contribution of 6% of gross pay and contributes 3% of gross pay to a dependent care flexible spending plan. His current year taxable earnings for Medicare tax, to date, are $198,950.Total Medicare Tax = $ ****Incorrect Answer!! $41.94*****
Prior to the current period, Omar Phipps had earnings subject to Social Security tax of $115,800. This week, Omar has gross earnings of $2,025 and contributes $90 to a dependent-care flexible spending account. His earnings subject to Social Security tax during the current week are $_____?
Bruce Miller's filing status is married filing separately, and he has earned gross pay of $3,200. Each period he makes a 403(b) contribution of 10% of gross pay and contributes $100 to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $136,600.Social Security tax = $68.20Medicare tax = $ ****Incorrect Answer $72.85****
Lukas Douglas' filing status is married filing separately, and he has earned gross pay of $2,100. Each period he makes a 403(b) contribution of 11% of gross pay and contributes $80 to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $137,500.Social Security tax = Answer not $110.918