FICA Tax

Tags: 

The program is projecting FICA tax for my wife who has no income. Also it is showing FICA tax in the year we sell our house, and have no income from employment.

Comments

dan royer's picture

It's probably the Medicare Tax. That's where we record that tax.

https://www.irs.gov/businesses/small-businesses-self-employed/questions-...

According to the link. 4. What wages are subject to Additional Medicare Tax?
All wages that are currently subject to Medicare Tax are subject to Additional Medicare Tax if they are paid in excess of the applicable threshold for an individual’s filing status. For more information on what wages are subject to Medicare Tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15, (Circular E), Employer’s Tax Guide.

So Medi-care tax should not be computed on the gain from the sale of our house.

You’re correct that the Additional Medicare Tax of 0.9% on wages does not apply to the capital gains on your home.
However, the Unearned Income Medicare Contribution, aka the Net Investment Income Tax, does apply to capital gains over $500,000 on your primary home and to all capital gains on a second home.