Are FICA taxes (Social Security and Medicare) counted towards federal or state tax liability?

FICA taxes (Social Security and Medicare) are federal taxes, but they're separate from your federal income tax. They're not included in the calculations when people typically talk about "federal taxes" in casual conversation. Here's how it breaks down: When you earn $245k, you'll pay three distinct types of federal taxes: 1) Federal income tax (based on tax brackets) 2) Social Security tax (6.2% on wages up to $168,600 in 2025) 3) Medicare tax (1.45% on all wages, plus an additional 0.9% on income over $200,000) Most online tax calculators focus on federal income tax only, so yes, you would need to calculate and add FICA separately. For your income level, you'll hit the Social Security wage cap, meaning you'll pay 6.2% on the first $168,600 only. But Medicare tax applies to all your earnings, with that additional 0.9% surcharge on amounts over $200,000. State taxes are completely separate from all of these federal taxes.

I just want to share something that helped me understand my tax situation WAY better. I was super confused about all these different taxes too, especially trying to figure out my actual take-home pay after a promotion. I tried a bunch of different calculators but they all seemed to give me different numbers. I ended up using https://taxr.ai which analyzed my paystubs and tax documents and gave me an actual breakdown of all the different taxes I was paying - federal income tax, state, FICA, etc. It even projected my tax liability based on my new salary so I could see exactly what my new take-home pay would be including ALL taxes. The analysis showed me where my money was going and even found some tax saving opportunities I had missed.

Just wanted to follow up about my experience with taxr.ai that I asked about earlier. I went ahead and tried it with my mixed W-2 and 1099 income situation. It was actually pretty eye-opening! The analysis broke down exactly how much I was paying in each category of tax, and showed that my self-employment tax on my side gig was taking a bigger bite than I realized. The tool showed me that I could save almost $4,800 in taxes by setting up a Solo 401(k) for my freelance work instead of just putting that money in a regular investment account. I hadn't considered that option before. I'm definitely going to be more strategic with my tax planning moving forward.

If you're trying to understand your total tax picture, you might also run into issues contacting the IRS with questions - their phone lines are IMPOSSIBLE to get through. After spending days trying to reach someone about how my FICA taxes were being calculated on my paystub (something seemed off), I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c They basically hold your place in the IRS phone queue and call you when an agent is about to answer. I was skeptical, but I got through to an actual IRS person who confirmed there was indeed a withholding error happening with my Social Security cap calculation. Saved me from overpaying! Thought this might help if you need to clarify anything specific about your tax situation directly with the IRS.

I have to eat my words from my skeptical comment earlier. After waiting for months trying to reach the IRS about my employer's FICA withholding error, I tried that Claimyr service out of desperation. Got a call back in about 45 minutes with an actual IRS agent on the line! The agent confirmed my employer was calculating the Social Security cap incorrectly after I changed jobs mid-year. They explained exactly what form I needed to submit to get the excess FICA tax refunded (I didn't have to wait until filing my annual return). Would have taken me another 3 months of trying to get this resolved without being able to speak to someone. Sometimes the simplest solutions are the best ones.

One important thing to understand about FICA taxes that nobody mentioned yet - unlike federal income tax where you can get deductions and credits, there are very few ways to reduce your FICA tax burden legally. The main exceptions are: 1) Contributing to a Health Savings Account (HSA) 2) Contributing to a dependent care FSA 3) Some medical premium payments These come out pre-FICA as well as pre-income tax. But things like your 401k contributions - while they reduce your federal income tax - don't reduce your FICA taxes. That's a common misconception.

Just FYI, for 2025 the Social Security wage cap is $168,600 (someone above mentioned this), but wanted to clarify that the Medicare portion of FICA (1.45%) applies to ALL of your income no matter how high. Then there's that additional 0.9% Medicare tax that kicks in after $200k if ur single. I earn about 230k and the Medicare tax is the one that surprises ppl when they get to higher income levels. U never stop paying it no matter how much u make!