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Unformatted text preview: Capital Gains Long-term capital gains, profit earned on property or stock held for over 12 months, is taxed at different rates than regular income. Overall Tax Rate What percent of the Smiths income is paid in federal taxes? They paid $2425 in income tax and $4490.55 in FICA tax. Their total income was $60,850. So their overall tax rate is ( 2425 + 4490.55)/ 60,850 100 = 11. 36%. *FICA is actually broken into two parts. The social security tax is 6.2% and the Medicare tax is 1.45% (6.2% + 1.45% = 7.65%). Social security tax is paid on income up to $106,800. There is no cap on the Medicare portion of the FICA tax....
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This note was uploaded on 11/07/2011 for the course MGF 1107 taught by Professor Wooland during the Summer '08 term at FSU.
- Summer '08