Question

Kyle, a single taxpayer, worked as a free-lance software engineer for the first three months of 2019.  During that time, he earned $44,000 of self-employment income.  On April 1, 2018 Kyle took a job as a full-time software engineer with one of his former clients Hoogle Inc.  From April through the end of the year, Kyle earned $178,000 in salary.  What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year?  

Answer 1

S.NO	DESCRIPTION	AMOUNT	EXPLANATION
1	social security tax paid as an employee (lesser 0f 178000 or 118500 maxi base)* 6.2%	7347	118500*6.2%
2	social security wage basse limit less employee compensation subject to social security tax	0	118500-118500 limitted to 0
3	net earnings from self employment	40634	44000*92.35%
4	social security portion of self employment tax	0	(lesser of step 2 or 3)*12.4%
5	employer portion of medicare tax for self employment tax purpose	590	step3*1.45%
6	sum of tax payers compensation and net earnings from self employment	218634	178000+step 3
7	(lesser of step 6 or 200000)*1.45%	2900	200000*1.45%
8	greater of [ a. zero b. the amount from step 6 c. minus 200000]*2.35%	438	218634-200000 *2.35%
9	employee portion of medicare tax	3338	step 7+step8

total FICA taxes owned for year =step 1+step4+step5+step9

ie

7347+0+590+3338

=11275