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It's the other way around. FICA tops out at $135k. Past that your wages are taxed at only 1.45% (for medicare) more than any other non-capital-gains income.
by octoberfranklin 6y ago
It's the other way around. FICA tops out at $135k. Past that your wages are taxed at only 1.45% (for medicare) more than any other non-capital-gains income.
- vonmoltke 6y agoYou are forgetting the Additional Medicare Tax of 0.9% that kicks in at $200,000 (single) or $250,000 (married joint). There is also the Net Investment Income Tax of 0.9% that applies to all unearned income when you hit those same thresholds, including but not limited to income that qualifies as long-term capital gains.
- coryfklein 6y agoUhhh... are you ignoring the normal state and federal income taxes?