Question
Emily Davis is a 42-year-old nurse who earned a salary of $85,000 in 2023. Emily had been living in San Francisco for the past 10
Emily Davis is a 42-year-old nurse who earned a salary of $85,000 in 2023. Emily had been living in San Francisco for the past 10 years. In January of 2023, Emily decided to take a new job opportunity in San Diego to be close to her daughter, Olivia. Emily was divorced in 2017 and receives $2,500 of alimony payments each month from her former spouse. Emily also owns a small rental property. This year, Emily received $48,000 of rental payments from tenants and incurred $22,000 of expenses associated with the rental. In January, Emily paid a moving company $3,200 to move her personal belongings, and she spent two days driving the 500 miles to San Diego. In February 2023, Emily sold her principal residence in San Francisco for $1.4 million and she bought it for $1.1 million in 2017. She is currently renting in San Diego paying a monthly rental of $3,700. Emilys daughter Olivia (19 years old at the end of the year) is currently a full-time student attending a college in San Diego. She decided to live at home with her mom since her mom moved to San Diego. Emily provides more than one-half of Olivia's support. Olivia was awarded a $4,000 partial tuition scholarship this year, and Emily helped out by paying the remaining $1200 tuition cost. If possible, Emily thought it would be best to claim the education credit for these expenses. Emily wasn't sure if she would have enough deductions to benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Emily paid $8,000 in state income taxes and $6,500 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Olivia: Insurance premiums (not through an exchange): $10,000 Medical care expenses: $1,600 Prescription medicine: $700 Nonprescription medicine: $120 New eyeglasses for Olivia: $250 Shortly after the move, Emily had an accident and damaged her car, incurring $1,300 in repair costs. She also suffered whiplash and couldn't work for two months. Fortunately, she received $2,500 from her disability insurance. Her employer paid the premiums on the policy as a nontaxable fringe benefit. A few years ago, Emily acquired several investments with her savings. This year she reported the following income from her investments: $2,500 of interest income from corporate bonds and $2,100 interest income from California state municipal bonds. Overall, Emily's stock portfolio appreciated by $16,800, but she did not sell any of her stocks. Olivia reported $7,800 of interest income from a savings account she received as a gift from her grandparents over the last several years. This was Olivia's only source of income for the year. Emily had $12,300 of federal income taxes withheld by her employer. Emily did not make any estimated tax payments. Her tax liability last year was $9,000.
Determine the amount of FICA taxes Emily was required to pay on her salary.
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