Question

In: Accounting

During 2019, Scott Howell received a salary of $135,000. The social security base amount for 2019...

During 2019, Scott Howell received a salary of $135,000. The social security base amount for 2019 was $132,900. How much payroll tax should have been withheld from Scott's salary for 2018?

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Expert Solution

With hold tax = 132900*6.2%+135000*1.45%

10197.5

If social security base amount is less than salary received then the difference amount is taxable  

  • social Security Benefits and Taxes

Attention: On April 2, 2020 the US Treasury announced that Social Security recipients who are not typically required to file a tax return and did not file in 2018 or 2019 do not to need take an action nor need to file a 2018 or 2019 tax return, and will receive their payment directly to their bank account.

The IRS will use the information from your Form SSA-1099 or Form RRB-1099 to generate the payment, which will either be directly deposited into your bank account or sent to you via check in the mail. This includes senior citizens, Social Security recipients or SSI incl. people on SSDI and railroad retirees who are not otherwise required to file a tax return. Since the IRS does not have dependent information for this group of recipients, each person would receive $1,200 per person, without the

One of the first questions most Social Security Benefit recipients want to know if there Social Security income is taxable income. If you are still working when you receive Social Security Benefits and you have income from other sources, it is possible that a portion of your Social Security income will be taxable. Please contact us here and now for a special Promo Code that will enable you to prepare and eFile your Taxes for Free or up to 60% less. You must have started a 2019 Tax Return on eFile.com and entered your income data in order to qualify.

Generally, if your Social Security benefits is your only source of income, then it is usually not considered taxable income and thus it's not taxed. If you receive Social Security benefits, you will be sent a Form 1099-SSA, which will show the total dollar amount of your Social Security income for the given tax year.

However, whether or not your your Social Security income is taxable, and how much is taxable depends on your total income from all sources and your IRS tax return filing status. The easiest and most accurate way for the current tax year 2019 to find out if you need to pay taxes on your Social Security income is to start a free tax return on eFile.com. The eFile.com tax return calculation is very comprehensive and very reliable. Based on the information you provide through the online tax question via your Form 1099-SSA and other income sources (if you have them), the we will determine whether or not you have to pay Social Security taxes and if so. As a result the eFile.com tax application will calculate the amount and prepare all the income tax return forms necessary for you so you can e-File tax return and report your Social Security benefits.


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