Question

Kyle, a single taxpayer, worked as a free-lance software engineer for the first three months of 2018. During that time, he earned $94,000 of self-employment income. On April 1, 2018, 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 $188,000 in salary.
What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year?

Answer 1

Answer:

Total amount owed by Kyle = $21573

Step-by-step explanation:

In the question,

Amount of money earned by Kyle in first three months = $94,000

Amount of money earned by Kyle in Remaining months working as a Full Time = $188, 000

Total Money earned by Kyle = $282,000

Now,

We know that the Percent of FICA(Federal Insurance Contributions Act) taxes are,

Social Security tax = 6.2 %

Medicare tax = 1.45 %

So,

Total percent of tax paid = 7.65 %

So,

Total amount paid in taxes = 7.65 % of Total Money earned by Kyle

Therefore,

Total amount paid in tax = 0.0765 x 282000 = $21573