https://file.aiquickdraw.com/mathbot/file/1727065761707foa2ok57.jpg

Let's break down the information from the image to calculate the FICA tax.

**Given:**
- The taxpayer is not self-employed.
- Income = $163,000.
- FICA tax rates for non-self-employed individuals:
  - 7.65% on the first $142,800 of income.
  - 1.45% on income exceeding $142,800.

**Step 1: Apply the 7.65% rate to the first $142,800.**
\[
\text{Tax on first $142,800} = 142,800 \times 7.65\% = 142,800 \times 0.0765
\]

**Step 2: Apply the 1.45% rate to the income exceeding $142,800.**
\[
\text{Income exceeding $142,800} = 163,000 - 142,800 = 20,200
\]
\[
\text{Tax on excess income} = 20,200 \times 1.45\% = 20,200 \times 0.0145
\]

Now, let's calculate the total FICA tax.The taxpayer's FICA taxes amount to **$11,217.10**.

Would you like any additional explanations or clarifications?

Here are five related questions to consider:
1. What are the components of the 7.65% FICA rate?
2. How do FICA taxes differ for self-employed individuals?
3. How is the threshold of $142,800 determined for FICA taxes?
4. What happens to FICA contributions on income above the $142,800 limit?
5. How do Medicare and Social Security contribute to FICA taxes?

**Tip:** Keep track of income thresholds as they can change annually, impacting how much you owe in FICA taxes.

If a taxpayer is not self-employed and earns $163,000, what are the taxpayer's FICA taxes?

Calculate the FICA taxes for a taxpayer earning $163,000 with 2021 rates. Learn how to apply the 7.65% and 1.45% tax rates on different income thresholds and determine the total FICA tax owed.

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