I created my plan and ran the reports On the taxes tab on the detail spreadsheet it is showing FICA tax payments for my wife in 2017 and 2021 to 2025. My wife does not work and has no income. She is 49 at this time. I am not sure why this is calculating tax for my wife.
How can I suppress the FICA tax calculations? My current income is from deferred compensation and returns on financial assets. At the time of the income deferral both FICA and Medicare Taxes were paid on the deferred amount, and I do not have to pay twice. The amount showing up in the report is meaningful.
I have two questions:
1. My reports show small amounts of FICA taxes paid for both spouses starting at ages 72 and 71 and continuing until death. We won't have any wage income, so what does this mean?
2. I am in the fortunate group that will pay a higher Part B premium after starting SS at age 70 due to exceeding the income threshold for the minimum premium. Possibly related to Question 1, the total spending shows a jump in Part B premium in the year when we attain ages 73 and 72, but I would have expected the jump earlier. Is this a bug?
My wife has no earned income, but ESPlanner is showing her as paying FICA taxes every year. What is driving this?
I'm entering Special Receipts from oil & gas royalty payments for 2014-2018. Since these royalty payments are taxable, albeit subject to complex depletion allowances, I've selected Ordinary Income. However, that appears to cause ESPlanner to generate FICA taxes, which I believe is not correct. Is there a better way to model taxable royalty income w/o generating FICA taxes? In this case, there are no other income sources that would generate FICA taxes.
As you are aware, a Federal Employees Retirement System (FERS) pension is partially inflation adjusted according to the CPI as follows: increase in CPI up to 2% = FERS COLA same as CPI increase; 2 - 3% increase in CPI = 2% COLA; 3% or more increase in CPI = CPI - 1% increase in COLA. How do we enter this in the pensions tab or what percentage should we enter as "degree of inflation indexation of annual benefit?" Thank you.
In my reports Details>Taxes page, FICA taxes appear after my wife and I turn 70. We will have no income from labor (last labor earnings entry was for 2011), just from investments, pensions and social security. What is meaning of the FICA entries?