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.


dan royer's picture

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.'s picture

thanks, Dan. That occurred to me as well, assuming ESPlanner puts that tax into the FICA amount.

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