Category: Taxes

Busting Tax Brackets

Let’s talk tax brackets. Federal income tax brackets, to be more specific. I suppose I am a little late for the busted college basketball bracket analogy, but this just couldn’t wait for March Madness 2020. Not to mention, there really isn’t much of an analogy back to basketball. After all, college athletes don’t get paid. Well, at least they shouldn’t. But I suppose if they did take illegal payments, the IRS would want a piece...

The 30% Reduction In Social Security Tax No One Remembers

So today, you are going to get a short history lesson from Max OOP. We have basically closed out the Max Out of Pocket “Fundamentals of FICA” course. I will eventually brand it as “Fun with FICA”. We have even started using those skills in application on our stroll through the cafeteria to buy health insurance from our employer. There will be a lot more of that to come. But after all the writing about...

GIMME SHELTER: Sheltering Medical Premiums From FICA Payroll Taxes With Cafeteria Plans

We have learned a lot these last few months here at Max Out of Pocket. Since Max OOP is just an average Joe Max, we prefer to keep things in nice, bite-sized chunks where we can. Hopefully that works out for everyone as we take a trip through the cafeteria today and pick up some medical insurance. The Rundown With an initial focus on FICA payroll taxes, we learned that most Max Out of Pocket...

Medicare FICA: Tax or Premium?

Max Out of Pocket has a question for you. Do you have any clue how much you pay into the Medicare program out of every pay check? I mean come on, what else do you have to worry about on a Saturday afternoon?   Well, a big piece of the answer is in your FICA (Federal Insurance Contributions Act) payroll taxes. It is an important concept to understand before we get too far into your...