FICA not withheld

3 replies
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Hi! Big question here... My wife's salary does not withhold FICA because she contributes to a state pension fund. Tax has never been withheld on it.

How does this get accounted for in Turbo Tax? Or does it even need to be???

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DoninGA

Level 15

You only have to enter her W-2 as received. Neither SS taxes or Medicare taxes withheld or lack of taxes withheld are reported on a tax return.

Anonymous

But does Medicare and Social Security figure into the calculation for taxes owed calculated by Turbo Tax?

DoninGA

Level 15

@4693879 wrote:

But does Medicare and Social Security figure into the calculation for income taxes owed calculated by Turbo Tax?

No. Your taxes are based on your gross income you have reported on the W-2 box 1, any self-employment income you have entered, interest and dividend income or capital gains from the sale of an investment.

The only time SS taxes come into play on a tax return is if you have two or more employers and the total of all SS taxes withheld is greater than the maximum SS taxes to be withheld in the tax year. If the max is exceeded then the there will be a tax credit for the excess taxes withheld.