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What is the limit on earnings subject to a medicare tax deduction?
I suspect you mean wages subject to the FICA contribution/payment. (The payment is generally NOT deductible in determining taxable income). 2007 The maximum amount of wages subject to the social security tax for 2007 is $97,500. There is no limit on the amount of wages subject to the Medicare tax. 2008 The maximum amount of wages subject to the social security tax for 2008 is $102,000. There is no limit on the amount of wages subject to the Medicare tax. 2009 The maximum amount is $106,800, no limit to the medicare tax. Remember. the wage to be taxed is determined using different definitions of income than in other things (like income subject to income tax).
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Until December 31, 2012 it is not. After that if you are an individual making $200,000 or more a year or a household making $250,000 or more a year, a tax of 3.8% will be asse…ssed.
Because that is how Congress decided to pay for the Medicare program.
IRA withdrawals are subject to neither Medicare nor Social Security tax.
Taxes deducted from an employee's earnings to finance social security and medicare benefits are called FICA taxes?
YES that is correct. FICA stands for "Federal Insurance Contributions Act." It's the tax withheld from your salary or self-employment income that funds the Social Security and… Medicare programs.The (OASDI) Old Age Survivor and Disability Insurance (FICA) (social security and Medicare taxes) all mean the same tax for social security benefits (SSB or SSDI). All mean the same thing.
What is the difference between federal and subject wages Employees earn gross wage which is total earnings but I need to figure subject wages which i believe are earnings after pre-tax deductions?
Well sort of -. Each type of "subject income" is different and defined by the item and situation.. So a gross income, being what most people consider their pay before taxes.…. Federal taxable income defines what is pay differently. sometimes in big ways (like the value of life insurance over a certain amount is pay, contributions to retirement account may not be, etc,), and sometimes the item is subject as pay on all the types..but at different times.. Pay subject to FICA tax uses yet another definition and includes some things and excludes others that Federal taxable income does.. We can go on with that for some while...and the items may be considered something in one work situation and not in another: For example, a place to live may be income for an employee in say NYC, but not one on an oil derrick in the north sea.. You need to find the definition of exactly what "subject" your addressing...and compare it to the other.
Withholding amounts from your gross income is an advance payment of income tax and other required taxes, etc that your employer payroll department is required to withhold from… your gross earnings that are subject to the withholding tax rate amounts.
Yes is the short answer but there are some guide lines to be followed. . How Much of the Expenses Can You Deduct? . You can deduct on Schedule A (Form 1040) only the amount… of your medical and dental expenses that is more than 7.5% of your AGI(Form 1040, line 38). In this publication, the term "7.5% limit" is used to refer to 7.5% of your AGI. The phrase "subject to the 7.5% limit" is also used. This phrase means that you must subtract 7.5% (.075) of your AGI from your medical expenses to figure your medical expense deduction.
I am not finding an answer to my question---Are the premiums on mymedicare supplement tax deductable? Please help!
Social Security is funded by FICA; Medicare is funded by Medicare tax.
Yes Medicare will continue to be deducted regardless of age. As long as you have earned income, even after retirement, you continue to contribute to Social Security and Medica…re with FICA taxes at the same rate as before you retired.
Yes, bonuses are like wages. They are subject to the same income and Medicare taxes.
No. The earned income tax credit is a credit received by some based on their income and lawful dependent children. It is not a deduction of any kind.