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Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2020. During that time, he earned $76,000 of self-employment income. On April 1, 2020, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Inc. From April through the end of the year, Kyle earned $196,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year

Answer :

Jepessoago

Answer:

$18,943.40

Explanation:

FICA taxes when Kyle was self employed = $76,000 x 15.3% = $11,628

Social security taxes while employed = ($137,700 - $76,000) x 6.2% = $3,825.40

Medicare taxes while employed = [($200,000 - $76,000) x 1.45%] + [($196,000 + $76,000 - $200,000) x 2.35%] = $1,798 + $1,692 = $3,490

Total FICA taxes = $18,943.40

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