Also suppose that the taxes for Social Security and Medicare together are 7.65%, and that they are applied to income up to $100,000. If your income is $123,000, what is your total income tax bill and how much will you have paid in Social Security and Medicare taxes? Total income tax: $ Social Security and Medicare taxes: $

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Adyson Anthony

21 January, 20:22

Also suppose that the taxes for Social Security and Medicare together are 7.65%, and that they are applied to income up to $100,000. If your income is $123,000, what is your total income tax bill and how much will you have paid in Social Security and Medicare taxes? Total income tax: $ Social Security and Medicare taxes: $

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Billy Rose · Answer 1

The taxable income is 100,000 dollars

the taxes amount to 7,650 dollars

Explanation:

As our income are above the celling (123,000 dollars) we pay taxes up to 100,000 which is where the taxable income is capped at.

taxable income x tax rate = taxes payable

100,000 dollars' x 7.65% taxes = 7,650 dollars of taxes in social security and madicare.