“Amounts withheld for taxes, including but not limited to income tax, social security and Medicare taxes are considered “received” and must be included in gross income in the year they are withheld.” – Tax Topics - Topic 401 Wages and Salaries
“Self-Employment Tax. When figuring your adjusted gross income on Form 1040, you can deduct the employer’s equivalent portion of tax.” – Tax Topics - Topic 554 Self-Employment Tax
“Ordinary dividends are the most common type of distribution from a corporation. They are paid out of the earnings and profits of the corporation. Ordinary dividends are taxable as ordinary income unless they are qualified dividends. Qualified dividends are ordinary dividends that meet the requirements to be taxed as net capital gains… Capital gain distributions may be paid by regulated investment companies (mutual funds) and real estate investment trusts (REITs). Capital gain distributions are always reported as long-term capital gains.” – Tax Topics - Topic 404 Dividends
“Almost everything you own and use for personal or investment purposes is a capital asset. Examples include a home, household furnishings, and stocks or bonds held in a personal account. When a capital asset is sold, the difference between the basis in the asset and the amount it is sold for is a capital gain or a capital loss.” – Tax Topics - Topic 409 Capital Gains and Losses
cf. Tax Topics
FICA & SECA Tax Rates
Contribution and Benefit Base
Shameless plug: Eliminate the taxable maximum for OASDI (Social Security) as was done for HI (Medicare Part A) in 1993. That will assist OASDI to become solvent. Employers and high income earners can share that they do not get benefits commensurate with their contributions. Disability Insurance, Hospital Insurance and Old-Age and Survivors Insurance become insolvent in 2016, 2024 and 2035, respectively.