ITP Info

Question 1

What does FICA stand for?

Answer 1

FICA = Federal Income Contribution Act

Question 2

What is included in FICA?

Answer 2

FICA consists of Social Security and Medicare for a total of 7.65% (6.2% for Social Security and 1.45% for Medicare (the same as in 2023)

Question 3

What is the Social Security % in FICA withholding? Is there an income cap?

Answer 3

Social Security withholding is 6.2% on an income cap of $168,600 in 2024.

Question 4

E_______ F_______ : For your FICA withholding, if withhold more than SS than the income cap, what happens to that additional withholding?

Answer 4

EXCESS FICA: If you withhold more Social Security than the cap, it is considered excess Federal tax withholding.

Question 5

What is the Medicare % for FICA withholding?

Answer 5

1.45%

Question 6

What is Additional Medicare Tax? When does this apply?

Answer 6

A 0.9% Additional Medicare Tax applies to Medicare wages, self-employment income, and railroad retirement (RRTA) compensation that exceed the following threshold amounts based on filing status: $250,000 for married filing jointly; $125,000 for married filing separately; and. $200,000 for all other taxpayers.

Question 7

Is there an income cap with Medicare tax?

Answer 7

Unlike Social Security withholding, there is no income cap on Medicare withholding. The % of 1.45% of income plus 0.9% of income over specified thresholds apply to your full income.

Question 8

Standard Income Tax Deduction for Single Filers (2024)

Answer 8

$14,600

Question 9

Standard Income Tax Deduction for Joint Filers (2024)

Answer 9

$29,200