https://file.aiquickdraw.com/mathbot/file/1729434911941l2rparts.jpg

The image shows a problem related to calculating FICA (Federal Insurance Contributions Act) taxes based on wages earned and includes 2021 Marginal Tax Rates information.

Here's how you can solve the FICA tax part of the problem:

### Step 1: FICA Tax Calculation
FICA consists of two main components:
1. **Social Security Tax**: 6.2% of wages up to $142,800.
2. **Medicare Tax**: 1.45% of all wages (no wage limit).

Given:
- You earned **$18,000** in wages.

The rates provided in the image indicate that for wages:
- The Social Security Tax is **7.65%** (this includes both Social Security and Medicare taxes) up to $142,800 of income. 

### Step 2: Calculating Social Security Tax
Since you earned $18,000 (which is less than $142,800), the Social Security tax calculation is straightforward:

- **7.65% of $18,000**:
  \[
  \text{Social Security tax} = 0.0765 \times 18,000 = 1,377
  \]

So, the total FICA tax is **$1,377**.

### Step 3: If Self-Employed
The Self-Employed Rate in the image shows **15.3%** on the first $142,800 of net income. For self-employed individuals, the calculation would be:

- **15.3% of $18,000**:
  \[
  \text{Self-employed FICA tax} = 0.153 \times 18,000 = 2,754
  \]

### Next Steps for the Problem:
The problem seems to have multiple parts, labeled (a) through (c), but this gives the FICA tax calculation for the wage provided. You would then proceed with the other parts as requested, likely dealing with the tax rates table shown, which is part of the overall tax filing process.

---

Would you like more details on any specific tax rate or further breakdown of the self-employed scenario?

Here are 5 related questions to expand on:
1. How does the standard deduction affect the taxable income for different filing statuses?
2. What other types of income are subject to FICA taxes?
3. How would the FICA tax calculation change if you earned more than $142,800?
4. What is the difference between the employee's and employer's FICA tax contributions?
5. How do tax credits differ from deductions in reducing tax liability?

**Tip**: Always double-check the latest tax rates for the current year, as they can change annually.

To help pay for college, you worked part-time at a local restaurant, earning $18,000 in wages and tips. Calculate your FICA taxes based on the given information.

Calculate the FICA taxes based on $18,000 wages. This includes both Social Security (6.2%) and Medicare (1.45%) taxes, and additional considerations for self-employment taxes. Suitable for students in Grades 9-12, understanding tax percentages and income deductions.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation