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I dont understand this medicare deduction>
If she is over 65,then the medicare premium should come out of her SS check??
The employer may be required to take & match the OASDI & HI tax. OASDI is your Social Security tax that has some limits. HI goes to Medicare & has no limit. The OASDI tax will go to create benefits in the future. The HI tax may generate credits to pay Part A for benefits in the future.
For the OP it appears you need to find a tax professional ASAP. Nothing we can do in an online forum.
OP has told us her employer has withheld $1647.35 medicare and $7159.27 SS,her gross income is $115,472,she is born after Jan 2,1957 which says she is less than 65 years old(.
also if no tax is withheld in 2021,and it turns out she owes tax,is there a penalty for not making estimated tax payment for 2021?
Probably will be subject to a penalty. Or the company that made the payments will be, if the IRS determines that the OP was actually an employee. Withholding the FICA and Medicare is a pretty good indication that the payee is actually an employee, not a contractor.
the OP stated that numbers for Wages and SS & Medicare deductions, came from a W-2. But apparently no IRS income tax withholding was done, for whatever reason.
Probably will be subject to a penalty. Or the company that made the payments will be, if the IRS determines that the OP was actually an employee. Withholding the FICA and Medicare is a pretty good indication that the payee is actually an employee, not a contractor.
my colleague back in the 80s must have filed a form that he does not believe in paying taxes,thats why the payroll dept never withhold any income tax from his paycheck,may be OP did the same.
this could be a way of borrowing from yourself or Uncle,then figure what to do next year .
something like thisi will be caught by the computer first ,and then a human will look into it,but IRS is so badly behind.
If she is ever audited,they will llok at two years worth of returns plus documents
so she is an employee,not a contractor?
then why is Fed income tax not withheld??
I thought if one was a contractor, you got a 1099 (no taxes or SS/Medicare withheld) and if you were an employee you got a W-2 and the employer withheld SS/Medicare and taxes. Have I been thinking wrong all these years?
I thought if one was a contractor, you got a 1099 (no taxes or SS/Medicare withheld) and if you were an employee you got a W-2 and the employer withheld SS/Medicare and taxes. Have I been thinking wrong all these years?
No, but there are companies that treat people like contractors, but offer to withhold FICA and Medicare taxes. It's just weird.
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