Question

In 2019, Martin had two employers during the year. Both employers withheld Social Security tax from his wages in the amounts of $4,314.05 and $4,274.75. What amount can Martin claim as a credit against his income tax when he files his income tax return

Answer 1

Answer:

$1241.80

Explanation:

From the given information:

the social security taxes withheld by both employers are $4314.05 and $4274.75 respectively.

Let's recall that the maximum amount the IRS can also withhold from wages is $7347.00.

Therefore;

the required amount that can be claimed as a credit is:

= $4,314.05 +  $4,274.75 - $7347.00

= $1241.80

Answer 2

Answer:

$349

Explanation:

1) 4,314.05 + 4,274.75 = 8,588.80

2) Social security withheld max: 132,900 * 6.2% = 8,239.80

3) 8,588.80 - 8,239.80 = 349