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Why is my taxable FICA and Medicare income slightly lower than my taxable net income? (US)
Why is my taxable FICA and Medicare income slightly lower than my taxable net income? (US)
Updated over a year ago

In Hurdlr’s detailed tax calculations, you may notice that your Taxable Income for FICA and Taxable Income for Medicare are slightly lower than your overall Taxable Net Income. This is due to how self-employment income taxes are calculated.

Taxable Income for FICA & Medicare = (Taxable Net Income + Self-Employment Deduction) x 0.9235*

Taxes Owed for FICA & Medicare = Taxable Income for FICA & Medicare x Current FICA & Medicare Tax Rates

This number is determined on the Schedule SE form. You can learn more about Self-Employment taxes and the Schedule SE form here.

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