Why FICA tax if no earned income?


My wife has no earned income, but ESPlanner is showing her as paying FICA taxes every year. What is driving this?


gyropilot's picture

I'm seeing something similar to this, but it's only on my survivor report for the years where I'd have large withdrawals from my retirement accounts (and definitely no earned income).

CORRECTION: I'm seeing it on ALL tax reports, both regular planning and the contingent planning for myself and my spouse.

dan royer's picture

You may be 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 (ESPlanner) report it as FICA.


Thanks, that seems to be it. Does the software split those types of taxes on unearned income 50/50 between me/my wife?

dan royer's picture

I'm not sure. Perhaps that tax detail worksheet in the PDF would offer some clue, but I assume so yes.

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