I get that federally taxable wages and social security wages are not always the same number.
But in my experience, if they are different, SS wages are higher than FICA, not vice versa.
On DW's form, her SS income is smaller than her federally taxable income.
Any idea why? Thanks.
Duke said:On DW's form, her SS income is smaller than her federally taxable income.
Social Security is only computed on the first $150K or so of income (the number changes every year). It's a regressive tax.
https://www.irs.gov/taxtopics/tc751
Medicare computations got a lot more complicated when Obamacare came around because it's now done on capital gains in addition to regular income.
Whups, wrong forum - sorry. Mods, kindly move to O/T, please.
In reply to codrus (Forum Supporter) :
Thank you. A couple years ago the base number was around $132k. I don't know what it is for 2022 but she is below the old cutoff.
Like I said, I'm used to SS being the same or higher for most folks. My concern is if her income is undervalued, she won't get the benefit she should.
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