Are social security and medicare contributions considered part of federal income tax when calculating tax brackets?

Social Security and Medicare taxes (collectively called FICA taxes) are completely separate from your federal income tax. They aren't part of your income tax bracket calculation at all. When you're looking at your paystub, you'll see separate lines for: - Federal income tax (this is what your tax bracket applies to) - Social Security tax (currently 6.2% of your wages up to a certain limit) - Medicare tax (currently 1.45% of all your wages, with an additional 0.9% for high earners) Your 22% tax bracket only refers to the federal income tax portion. The FICA taxes are flat percentages that don't change based on your income bracket (except for the Social Security wage cap and the additional Medicare tax for high earners). So when you're calculating whether you're in the 22% bracket, you're only looking at your federal income tax, not the FICA taxes.

I was super confused about this exact thing last year and found this tool called taxr.ai (https://taxr.ai) that helped me understand my tax situation better. I uploaded my paystubs and tax documents, and it broke everything down into simple explanations showing exactly how my federal income tax was calculated separately from FICA taxes. The coolest part was that it showed me how my marginal tax rate (like your 22% bracket) only applies to the income within that bracket, not all my income. I had been calculating things wrong for years! The tool explained that my Social Security and Medicare were completely separate calculations from my federal income tax brackets.

I tried out taxr.ai after seeing it mentioned here, and I have to say I'm impressed. As someone with both W-2 and self-employment income, I was always confused about how my self-employment taxes related to my income tax bracket. The tool clearly showed me that I was paying the standard 15.3% self-employment tax (essentially doubled FICA) separate from my income tax calculations. What really surprised me was learning how the income tax brackets work - only the income in each specific bracket gets taxed at that rate! I'd been wrongly assuming my whole income got taxed at my highest bracket rate. No wonder my calculations were always off. Definitely recommend for anyone who gets confused by all the different tax components.

If you're struggling to get clear answers from the IRS about tax questions like this, I highly recommend Claimyr (https://claimyr.com). I spent TWO WEEKS trying to get through to an IRS agent to ask about how FICA taxes relate to my income tax calculations and kept hitting dead ends. I was about to give up when I found Claimyr. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Basically, they get you through to an actual IRS agent within minutes instead of waiting on hold for hours. I was connected to an agent who explained everything about how Social Security and Medicare taxes are completely separate from the federal income tax brackets.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I was still desperate to talk to someone at the IRS about my tax bracket questions, so I tried it anyway. To my shock, I was connected to an IRS representative in about 15 minutes after spending literally DAYS trying on my own. The agent explained everything the first comment said - Social Security and Medicare (FICA) taxes are completely separate from federal income tax brackets. My 24% tax bracket only applies to my federal income tax, not to the flat FICA taxes. They also helped me understand how the progressive tax bracket system works - my entire income isn't taxed at 24%, just the portion that falls in that bracket. Definitely worth using if you need actual clarification from the IRS.

One thing that's important to understand is that while FICA taxes (Social Security and Medicare) are separate from income tax, they still affect your overall tax burden. For 2025, you're paying: - 6.2% for Social Security (on first $168,600) - 1.45% for Medicare (plus 0.9% additional on high incomes) - Plus your federal income tax rate So when budgeting, you need to account for all of these, even though only the federal income tax is what determines your "tax bracket.

Another way to think about this: your pay stub might show deductions like: - Federal Income Tax: $X (this is what your tax bracket applies to) - Social Security: 6.2% of your gross pay (up to limit) - Medicare: 1.45% of your gross pay The tax brackets (10%, 12%, 22%, etc.) only apply to that first number. FICA taxes are fixed percentages that don't change based on income brackets.

This is such a common confusion! I made the same mistake for years. The key thing to remember is that tax brackets are ONLY for federal income tax - they have nothing to do with FICA taxes (Social Security and Medicare). Think of it this way: when you hear someone say "I'm in the 22% tax bracket," they're only talking about the federal income tax portion of their paycheck deductions. The Social Security (6.2%) and Medicare (1.45%) taxes are completely separate flat rates that everyone pays regardless of their income level or tax bracket. So if you're trying to verify you're in the 22% bracket, you only look at your federal income tax withholding, not the total of all your tax deductions. Your coworker was absolutely right - they're separate things, even though they all come out of your paycheck at the same time. It's also worth noting that tax brackets are marginal, meaning only the income that falls within each bracket gets taxed at that rate. So being "in the 22% bracket" doesn't mean all your income is taxed at 22% - just the portion that exceeds the lower bracket thresholds.