Question 1

What is FICA tax?

Accepted Answer

FICA (Federal Insurance Contributions Act) includes Social Security tax (6.2% up to $168,600) and Medicare tax (1.45%). Additional Medicare tax of 0.9% applies to income over $200,000 for single filers.

Question 2

Which US states have no income tax?

Accepted Answer

As of 2024, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax.

Question 3

How is federal income tax calculated?

Accepted Answer

Federal income tax uses progressive brackets. For 2024 single filers: 10% up to $11,600, 12% up to $47,150, 22% up to $100,525, 24% up to $191,950, 32% up to $243,725, 35% up to $609,350, 37% above.