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Last year Ellen received $75,000 in compensation from her employer who also agreed to pay her Social Security taxes of $4,650 and Medicare taxes of $1,088 without deducting them from her wages. Based solely on these facts, what amount must Ellen include in her income

Sagot :

jepessoa

Answer:

Ellen's AGI = $80,738

Explanation:

Since Ellen's employer paid for her share of FICA taxes, we could consider them as taxable fringe benefits. As such, they must be included in Ellen's AGI for the current in order to determine her total taxable income = salary + social security taxes + medicare taxes = $75,000 + $4,650 + $1,088 = $80,738

anthougo

The amount Ellen must include in her income is $80,738.

Data and Calculations:

Annual employment compensation = $75,000

Social security taxes paid by employer = $4,650

Medicare taxes paid by employer = $1,088

Thus, the amount Ellen must include in her income is $80,738 ($75,000 + $4,650 + $1,088).

Learn more about the amount to include in taxable income here: https://brainly.com/question/25304207

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