Calculate the​ person's FICA​ taxes, marginal income​ taxes, and combined total tax. Then find the​ person's overall tax rate. Use the given tax rates. Assume that the individual is​ single, has no other sources of income and no adjustments to​ income, and takes the standard deduction.

JeremiahJeremiah 

earned 

​$41 comma 00041,000 

from wages as a computer programmer.

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Part 1

JeremiahJeremiah​'s 

FICA tax is 

​$enter your response here.

To calculate Jeremiah's total taxes, we need to determine his **FICA taxes**, **marginal income taxes**, and then compute his **combined total tax** and **overall tax rate**. The Federal Insurance Contributions Act (FICA) tax includes both Social Security and Medicare taxes, and we will use the given tax rate information for income taxes.

### Step-by-Step Solution:

#### Step 1: Calculate FICA Taxes

FICA taxes consist of:
1. **Social Security Tax:** 6.2% on the first $160,200 of earnings (for 2021).
2. **Medicare Tax:** 1.45% on all earnings.

Jeremiah's income is $41,000, which is below the Social Security limit of $160,200. Therefore, his entire income is subject to both Social Security and Medicare taxes.

\[
\text{Social Security Tax} = 0.062 \times 41,000 = 2,542
\]

\[
\text{Medicare Tax} = 0.0145 \times 41,000 = 594.50
\]

\[
\text{Total FICA Tax} = 2,542 + 594.50 = 3,136.50
\]

#### Step 2: Calculate Federal Income Tax

Federal income tax calculation depends on the standard deduction and the tax brackets. Given that Jeremiah is single and uses the standard deduction:

- **Standard Deduction for 2021 (Single):** $12,550

**Taxable Income:**
\[
\text{Taxable Income} = \text{Total Income} - \text{Standard Deduction}
\]
\[
\text{Taxable Income} = 41,000 - 12,550 = 28,450
\]

**2021 Tax Brackets for Single Filers:**

\[
\begin{align*}
\text{10% Bracket:} & \quad 0 - 9,950 \\
\text{12% Bracket:} & \quad 9,951 - 40,525 \\
\end{align*}
\]

Jeremiah's taxable income of $28,450 spans the 10% and 12% tax brackets.

1. **10% Bracket Calculation:**
   - Income in this bracket: $9,950
   - Tax: $0.10 \times 9,950 = 995$

2. **12% Bracket Calculation:**
   - Remaining income in this bracket: $28,450 - $9,950 = $18,500
   - Tax: $0.12 \times 18,500 = 2,220$

**Total Marginal Income Tax:**
\[
\text{Total Marginal Income Tax} = 995 + 2,220 = 3,215
\]

#### Step 3: Calculate Combined Total Tax

\[
\text{Combined Total Tax} = \text{FICA Tax} + \text{Marginal Income Tax}
\]
\[
\text{Combined Total Tax} = 3,136.50 + 3,215 = 6,351.50
\]

#### Step 4: Calculate Overall Tax Rate

\[
\text{Overall Tax Rate} = \left( \frac{\text{Combined Total Tax}}{\text{Total Income}} \right) \times 100
\]
\[
\text{Overall Tax Rate} = \left( \frac{6,351.50}{41,000} \right) \times 100
\]
\[
\text{Overall Tax Rate} \approx 15.5\%
\]

### Summary:
- **FICA Tax:** $3,136.50
- **Marginal Income Tax:** $3,215
- **Combined Total Tax:** $6,351.50
- **Overall Tax Rate:** 15.5%

Would you like more details, or do you have any questions?

### Follow-up Questions:
1. How would Jeremiah's taxes change if his income increased to $60,000?
2. What is the impact on FICA taxes if the earnings exceed the Social Security wage base limit?
3. How does the standard deduction affect the overall tax rate?
4. What happens to Jeremiah's tax calculations if he files jointly instead of as a single filer?
5. How would additional tax credits or deductions affect Jeremiah's overall tax rate?

### Tip:
Always check for updates on tax rates and standard deduction amounts, as they can change yearly and impact your calculations.

Learn how to calculate FICA taxes, marginal income taxes, combined total tax, and overall tax rate using an example problem. Understand the concepts of Federal Insurance Contributions Act (FICA) taxes, tax brackets, and standard deductions for a single filer.

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