IRS Tax Guide for Social Security and Other Information for Members of the Clergy and Religious Workers, For use in preparing 2019 Returns, Publication 517
IRS Tax Guide for Social Security and Other Information for Members of the Clergy and Religious Workers, For use in preparing 2019 Returns, Publication 517

Read Online IRS Tax Guide for Social Security and Other Information for Members of the Clergy and Religious Workers, For use in preparing 2019 Returns, Publication 517 RTF

Three federal taxes are paid on wages and self-employment income—income tax, social security tax, and Medicare tax. Social security and Medicare taxes are collected under one of two systems. Under the Self-Employment Contributions Act (SECA), the self-employed person pays all the taxes. Under the Federal Insurance Contributions Act (FICA), the employee and the employer each pay half of the social security and Medicare taxes. No earnings are subject to both systems. In addition, all wages and self-employment income that are subject to Medicare tax are subject to a 0.9% Additional Medicare Tax to the extent they exceed the applicable threshold for an individual's filing status. Medicare wages and self-employment income are combined to determine if income exceeds the threshold. A self-employment loss isn't considered for purposes of this tax. Railroad retirement (RRTA) compensation is separately compared to thethreshold. Additional Medicare Tax applies to Medicare wages, RRTA compensation, and self-employment income that are more than: • $125,000 if married filing separately, • $250,000 if married filing jointly, or • $200,000 for any other filing status. There is no employer match for Additional Medicare Tax. For more information, see Form 8959, Additional Medicare Tax, and its separate instructions. This publication contains information for the following classes of taxpayers.

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  • Released: November 16, 2020
  • Author: Internal Revenue Service (IRS) Department of the Treasury
  • Rating: 5
  • Publisher: Ebook DIgital Agency
  • Total Page: 1036 pages
  • File Size: 3670 KB
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