FICA taxes generated from Special Receipts entered as Ordinary Income
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.
Fri, 12/26/2014 - 15:16
Are you sure that you are not
Are you sure that you are not seeing the Unearned Income Medicare Contribution tax? This is a new tax that treats unearned income over $250,000 the same as earned income over $250,000. Since this is a Medicare Part A tax, we report it as FICA.
Mon, 12/29/2014 - 16:22
thanks, Dan. That occurred
thanks, Dan. That occurred to me as well, assuming ESPlanner puts that tax into the FICA amount.