2 ms·
He might be including the employer's share of FICA tax. If you're single and your AGI is $60,000, your taxable income is $49,700 (or lower, if you itemize dedu
by evunveot 10y ago
He might be including the employer's share of FICA tax.
If you're single and your AGI is $60,000, your taxable income is $49,700 (or lower, if you itemize deductions). You'll pay $8218.75 in Federal income tax, $3081.40 in social security, and $720.65 in Medicare, for a total of $12020.80 (24.2%). If you include the employer share of social security and Medicare, it comes out to $15,822.85 (31.8%).
He probably should have mentioned it if that's what he really did, but those taxes are real. Ask someone who's self-employed.