Do do employment taxes reduce Federal income tax?

Question

for insta

nce, let's say you earn $100 before tax wages.

$7.65 gets taken out for FICA taxes

Ignoring exemptions and other deductions, do you pay income tax on the $100 or $92.35?

Thanks!

Answer 1

You pay income tax on the 100 unless you contribute to a retirment plan.

Answer 2

You pay taxes on the $100 wages but, if that were self-employment earnings, then one-half of the self-employment tax would be deductible on line 27 of Form 1040. That's really not too much of a break for self employed since self-employment taxes are twice what you'd be withheld from you as an employee.

Jim Kirby, CPA

Answer 3

You pay income tax on the $100.

Answer 4

You pay income tax on the $100.

The FICA is an income tax in addition to the regular income tax.

Answer 5

I think you're speaking of SS and Medcare tax. These are not deductible, not exempt from income tax.
But, in most circumstances you do not pay tax on medical or SS when collected.
Except when one earns over the allowed limit and may be subject to tax on 80% of SS. Thanks to the Dems.

Answer 6

Sorry, you pay on the full $100.

Answer 7

No matter how many times you ask this, the answer is the same.

Answer 8

$100.00.

Isn't that sweet?