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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 579
Experience:  10 years experience
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As a Real Estate Broker since 1986 I have paid into FICA

Customer Question

As a Real Estate Broker since 1986 I have paid into FICA both employee and employers portions. The new income tax law affecting 2014 Social Security income ending with me paying much higher taxes than expected. Since taxes were paid on the amounts sent for FICA, is this a case of double dipping from the IRA? THANK YOU FOR YOUR RESPONSE.
Submitted: 5 months ago.
Category: Tax
Expert:  emc011075 replied 5 months ago.

Hi. My name is ***** ***** I will be happy to help you.

Can you be more specific what 2014 tax law you are referring to?

Customer: replied 5 months ago.
I don't have the actual tax code. It was a IRS tax code/law that affected Social Security income starting in 2014. it had several level which affected how much of the SS income was taxed.
Customer: replied 5 months ago.
I just went on the IRS website and can't find a reference to the code/law. As a tax professional would you have the information in your files?
Expert:  emc011075 replied 5 months ago.

I guess you are talking about the Medicare increase for High income earners that is calculated on your tax return starting in 2013. The income is not taxed again, it is additional tax if you are considered higher earner.

250K for married filing jointly, 200K for married filing separately or Head of household.

Expert:  emc011075 replied 5 months ago.

The logic is that if you earn more than average, you an afford to pay little more to contribute failing Medicare. The more income, the higher your tax bracket, the more income taxes you pay. The same logic is applied to Medicare tax.

Customer: replied 5 months ago.
In 2014 I ended up paying over $7,000. in unexpected tax. Does this seem like a logical amount to cover the higher Medicare tax? We filed jointly with a total adjusted gross income of $82,641.
Expert:  emc011075 replied 5 months ago.

No. That's not Medicare tax increase. Do you have your 2013 and 2014 return available? There could be many reasons why. Did you have medical insurance through Obamacare maybe?

Customer: replied 5 months ago.
I do have the 2013 and 2014 copies of my returns. I feel like I am beating a dead horse. Would it have helped if I had created a trust for all the real estate income?
Expert:  emc011075 replied 5 months ago.

Not necessary. Can you compare line by line your 2013 and 2014 return and tell me if there's a significant increase or decrease from one year to another and what line?

Customer: replied 5 months ago.
I can and will do the comparison. But I guess this is all for now. Thank you for your responses. Bye
Expert:  emc011075 replied 5 months ago.

Ok. Just let me know and we can discuss it further.

Expert:  emc011075 replied 5 months ago.

Hi. Just want to check if you have any questions.