In Describing FICA Taxes, Which (If Any) of the Following

question 48

Multiple Choice

In describing FICA taxes, which (if any) of the following statements is incorrect?

• A) The base amounts for 2019 probably will increase from the 2018 amounts.
• B) The base amounts for the Social Security and Medicare portions are the same.
• C) If both spouses work, excess FICA taxes need not result.
• D) Excess FICA taxes can be claimed as an income tax credit.

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Definitions:

Fixed Costs

Fixed expenditures that are unaffected by changes in production or sales volumes, like rent, wages, and insurance costs.

Marginal Cost

The cost incurred by producing one additional unit of a good or service.

Crafters Fair

An event where artisans and craftspeople showcase and sell their handmade goods, often featuring a variety of unique items.

Marginal Costs

The additional cost incurred in producing one more unit of a product or service.