November 24, 2020

Fica Limit 2020

Fica Limit 2020 we'd like to think audible for supporting PBS Digital Studios Do you remember the very first job you ever had? Maybe it was bussing tables,, bagging groceries,or working as a lifeguard. You put in your hours, keeping track of howmuch you expected to make, and.

When that first paycheck arrived, you opened it up and – surprise! Some of that money had already been spentfor you. If you’ve ever looked closely.

At your paystub,you probably noticed that Uncle Sam’s portion is broken into two main categories: The FederalInsurance Contribution, ACT (aka FICA) and Federal Income tax. The first one is essentially a federal insuranceprogram for the elderly, and helps pay for retirement and medical programs. For olderAmericans. Income tax rates have. Varied wildly throughouthistory. Before 1913, they were actually forbiddenby the U.S. Constitution. Thanks, 16th Amendment! As recently as 1981, the top tax rate was70% for singles earning over $108,300. And the highest rate on record, was in 1945,with a top rate of 94% for the ultra-wealthy! These days, tax rates, aren’t quite so high. But no matter how much the Federal Governmenttakes from your paycheck, you should know what it’s being spent on. Have you ever, stopped to figure out exactlyWHAT is being bought with all that money you send to Washington each year? I, think it’s time to… RUN THE NUMBERS! This is Tabitha. She works in H.R. and made $40,000 in 2017. After exemptions, and deductions, her taxableincome is $29,600, placing her in the 15% marginal tax bracket. Tabitha lives in a.

State with no state incometax, so at the end. Of the year, she ended up paying $7,038​ in Federal Taxes. Nearly half goes toward Social Security andMedicare., These taxes, known as payroll taxes, are spenton health insurance and income for the disabled and people in retirement, like Tabitha’sGrandparents. Gram-Gram and Paw-paw paid their FICA taxeswhen they were.

Tabitha’s age, and now they’re enjoying the benefits, just like Tabitha willsomeday. That leaves $3,978 of. Tabitha’s FederalIncome Tax left to be spent: The largest chunk of your Federal. Income Taxgoes to medical programs that help low-income families, like Medicaid and CHIP. That means that, including FICA, almost 60% of Tabitha’s federal taxes are basically going towards insurance programs. $930, of Tabitha’s salary supports men andwomen enlisted in the, armed forces, plus it pays for fighter jets, submarines, and Pentagonstaff. Tabitha may not realize it, but she’s onthe hook for America’s loans. $525 of her income taxes goes to pay backthe debt the, government borrows to say afloat. Plus interest. $298 goes to Unemployment and Labor.

Programs… $238 to Veteran’s Benefits, like VA Hospitalsand veteran job training programs. $179 goes to Food & Agriculture… And $167 of Tabitha’s salary helps keepthe government, running, funding agencies like the FBI, Border Patrol, Federal Prisons,and even the salaries of her Senators. Tabitha spends $127. On Transportation agencieslike the FAA and TSA, and $111 on Education, including Pell Grants and the National Endowmentfor the. Arts. She gives $83 a year to Housing & Communityprograms, $63 a year to Energy and the Environment… $51 a year for International Affairs like. TheState Department and the Peace Corps…and $39 a year to fund America’s scienceprograms,. Which includes all federal scientific research and space exploration. Although it might seem like those dollarsjust vanish, from your paycheck, the money you pay to the Federal Government affectsreal people, and changes our world every day. It would be hard to find.

Even one of theseexpenses that doesn’t touch your life. Or the life of someone you love. And guess what? These numbers aren’t set in stone. You can contact your local representative,national lobby groups, and.

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