Question

7-Henrich is a single taxpayer. In 2019, his taxable income is $452,000.     His $452,000 of taxable income includes $55,000 of long-term capital gain that is taxed at preferential rates.  What is his tax liability (including the net investment income tax)?

8-Brooke works for Company A for half of 2019, earning $62,000 in salary and she works for Company B for the second half of 2019, earning $90,000 in salary. What is Brooke’s FICA tax obligation for the year?

Answer 1

First:

Orginary income		$        397,000
Taxable income		$        452,000
Income tax liability		$ 144,393.50
[ 46628.5 + ( 397000 - 204100 ) × 0.35 ]+55,000×15%

Second:

	Social sec.	Medicare	Total
Taxable wages	132900	152000
× Tax rate	6.20%	1.45%
Taxes	8,239.80	2,204.00	10,443.80

Answer is:

10,443.80