FICA Tax and/Pension Question

Submitted by jimlenz on Sun, 12/18/2016 - 16:59

Return to Question Forum

Tags:

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.

Also, I input my pension which is a lump sum plus monthly amount. I am retiring on 6-30 in 2025 but when I enter the pension, it shows I am getting the entire amount for that year, when it should only be half. How do I best reflect the pension in year one, only receiving half the yearly amount?
Any thoughts are appreciated.

Jim

Comments

dan royer's picture

dan royer

Sun, 12/18/2016 - 18:20

The FICA tax you see there

The FICA tax you see there could very well be the Medicare Tax:

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

That is typically split in our program between husband and wife and recorded in the FICA column.

To get a half your pension, you'd have to enter it as a special receipt for that year or enter a second pension that only lasts for the one year and for half the amount that is normal.

Log in to post comments

Subscribe to RSS feed

Disclaimer: The suggestions and recommendations provided by Economic Security Planning, Inc.'s software tools and planning services do not constitute financial or investment advice. The creators of Economic Security Planning's software are not certified, registered, authorized, or any other form of financial planners. Economic Security Planning, Inc. is not an investment adviser registered with the U.S. Securities and Exchange Commission or any state securities agency, is not a registered broker-dealer and maintains no other regulatory credentials associated with the management of financial assets. Economic Security Planning, Inc. does not guarantee that the suggestions and recommendations derived from its software tools and planning services will necessarily achieve a secure economic plan. Like any software products, Economic Security Planning, Inc.'s software tools may have errors in its underlying code, and the assumptions about the future that it makes and that users input may prove false. In addition, output from the software tools and planning services may incorporate data obtained from third parties and such data (including any calculations that is based on such data) is provided on an “as is” basis. From time to time the output may contain errors that may be based upon, among other things, human data entry, aggregation and decompilation of data, processing of data through third party calculation engines and other processes that can give rise to errors. The company's financial plans and recommendations, including all of such plans and recommendations provided by its direct planning services, should be viewed as suggestive and informative educational inputs into your financial decision-making. None of our products or services recommend the purchase of specific financial products.

Copyright © 2023, ESPlanner || Patent Number: US 6611807 B1

Design by Zymphonies