Question
Dorthy who is 55 years old, works as a financial analyst in Capital One bank. Her monthly salary is $13,000. Dorthy is married to John
Dorthy who is 55 years old, works as a financial analyst in Capital One bank. Her monthly salary is $13,000. Dorthy is married to John who is 66 years of age and works as a salesman for a local car dealership. His monthly salary from the dealership is $8,500 per month but he has a very flexible schedule so he supplements his salary by accepting an employment in the evening at a high-end restaurant and earn $3,000 per month.
They have 3 kids (Nancy is 12, Hana is 15, and Joseph is 19 and attending a local community college). Dorthy has two sisters and three brothers. John has only one sister. Dorthy and John live in Detroit, Michigan.
Additional information for 2019:
1) They received interest income of $5,000 from their saving account in Capital one and $3,500 from Municipal bonds.
2) They sold stocks of Facebook for $25,000 (the stocks were purchased in 2016 for $29,000).
3) Dorthy invested $7,800 in an IRA account in JB Morgan while John invested $9,000 in an IRA account in Vanguard.
4) Dorthy and John paid $60,000 mortgage interest in 2019 for $1,200,000 mortgage loan that was taken on January 1, 2017. The interest rate is 6% on this mortgage.
5) John paid alimony of $1,500 monthly to his ex-wife, Lori. The divorce happened in 2015.
6) Dorthy received cash dividends of $3,800 from Amazon stocks on March 20, 2019.
7) Dorthy and John spent $100,000 from their own-pocket on medical treatment during 2019. Their health insurance company covered only $400,000 of the total medical cost. Total medical cost is $500,000.
8) Dorthy donated cash $10,500 to her local church.
9) Dorthys employer (Capital one) withheld $22,800 for federal income taxes, $14,700 for state income taxes, and the required amounts for FICA and Medicare from her paychecks.
10) Johns two employers withheld $16,500 for federal income taxes, $10,900 for state income taxes, and the required amounts for FICA and Medicare from his paychecks.
11) Johns father died on June 1, 2019. John received $500,000 from his fathers life insurance.
How much Social security and Medicare taxes should have been withheld by each of the three employers (Capital One, Car Dealership, and High-end restaurant).
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