Decide whether the following statement makes sense​ (or is clearly​ true) or does not make sense​ (or is clearly​ false). Explain your reasoning. Assume 2021 tax rates and policies.
I earned a total gross income of only​ $10,000 last​ year, yet I still had to pay​ $765 in FICA taxes.

The statement **makes sense**.

Here’s why:

FICA (Federal Insurance Contributions Act) taxes include two components: Social Security and Medicare taxes. For 2021, the FICA tax rates were as follows:

- **Social Security tax**: 6.2% of gross income (up to a wage base limit of $142,800)
- **Medicare tax**: 1.45% of gross income (with no wage base limit)

Total FICA tax rate = 6.2% + 1.45% = **7.65%** of gross income.

If you earned $10,000 in gross income, the FICA taxes would be:

\[
10,000 \times 0.0765 = 765
\]

So, paying $765 in FICA taxes on a $10,000 income matches the standard calculation under 2021 tax rates. Therefore, it is reasonable to say that the person had to pay $765 in FICA taxes on that income.

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Do you want more details or have any further questions?

Here are some related questions you might find useful:
1. How is the Social Security wage base limit determined each year?
2. What is the difference between gross income and taxable income?
3. Are there any deductions or exemptions for FICA taxes?
4. How do self-employed individuals pay FICA taxes?
5. What are the current FICA tax rates?

**Tip:** FICA taxes are split between the employer and employee, with both contributing equally for Social Security and Medicare, but self-employed individuals pay the full amount.

Decide whether the following statement makes sense (or is clearly true) or does not make sense (or is clearly false). Explain your reasoning. Assume 2021 tax rates and policies.
I earned a total gross income of only $10,000 last year, yet I still had to pay $765 in FICA taxes.

This problem explores whether it makes sense to pay $765 in FICA taxes on a gross income of $10,000 using the 2021 tax rates. It involves calculating FICA taxes based on the Social Security and Medicare percentages. Suitable for high school students learning income taxation and percentage calculations.

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