FICA taxes are comprised of Social Security and Medicare taxes. For the year 2023, the rates are as follows:
- Social Security tax: 6.2% on income up to the wage base limit of $160,200.
- Medicare tax: 1.45% on all income, with an additional 0.9% tax on income over $200,000 (this does not apply in this case as the income is below that threshold).
For a taxpayer earning $136,000, the FICA tax calculations would be:
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Social Security tax: \[ \text{Social Security tax} = 136,000 \times 0.062 = 8,432 \]
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Medicare tax: \[ \text{Medicare tax} = 136,000 \times 0.0145 = 1,972 \]
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Total FICA tax: \[ \text{Total FICA tax} = \text{Social Security tax} + \text{Medicare tax} = 8,432 + 1,972 = 10,404 \]
Therefore, the total FICA taxes for a taxpayer earning $136,000 in 2023 would be $10,404.