John has 2 jobs in 2019. He earned the following:
Job 1 Job 2
Salary 80,000 60,000
Federal Withholding tax 15,000 10,000
Social Security 4,960 3,720
Medicare 1,160 870
1. If John’s 2019 federal income tax is calculated at $ 23,500, how much will John receive as a refund on his 2018 federal income tax return?
For 2019 | ||
The refund amount is | ||
a) already tax paid-tax laibility | ||
(15000+10000)-23500 | $1,500 | |
Add: Overcap on social security liability | ||
((80000+60000)-132900)*6.2% | 440.2 | |
The refund amount is | $1,940.2 | |
If 2018 is taken as both years mentioned in question | ||
a) already tax paid-tax laibility | ||
(15000+10000)-23500 | $1,500 | |
Add: Overcap on social security liability | ||
((80000+60000)-128400)*6.2% | 719.2 | |
The refund amount is | $2,219.2 | |
ans 2 | ||
For 2019 | ||
Social security already paid on $80000 remaining | ||
(132900-80000)= | $52,900 | |
Self employment income on which social secuirty needs | ||
to be paid | ||
60000*92.35% | 55410 | |
Social security on lesser of $52900 or 55410 | ||
52900*12.4% | 6559.6 | |
medicare taxes 55410*2.9% | 1606.89 | |
Self employment tax | 8166.49 | |
for 2018 | ||
Social security already paid on $80000 remaining | ||
(128400-80000)= | $48,400 | |
Self employment income on which social secuirty needs | ||
to be paid | ||
60000*92.35% | 55410 | |
Social security on lesser of $52900 or 55410 | ||
48400*12.4% | 6001.6 | |
medicare taxes 55410*2.9% | 1606.89 | |
Self employment tax | 7608.49 | |
If any doubt please comment |
John has 2 jobs in 2019. He earned the following: Job 1 Job 2 Salary ...
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