The IRS is a prodigious publisher. Here are digests of two recently released Information Letters. Note: Information Letters are intended as private advice from the IRS to a requesting party. They may be used for informational purposes only; they may not be used or cited as precedent.
Query on FICA withholding. A 71-year-old who worked part time as a home care aide and had FICA taxes withheld from his pay inquired whether he needed to pay FICA taxes at all, or whether he was eligible for a refund of the FICA taxes that had been withheld from his pay.
IRS: There are no exceptions to FICA withholding based on age, part-time employment or work as a health care aide. However, there is a limited exclusion from FICA taxes: for 2015, home care aides and other household employees who earn no more than $1,900 don’t pay FICA taxes. (INFO 2015-0005)
Query on child support withholding and federal tax rates. A noncustodial parent complained that after-tax application of a child support withholding order unfairly increased his marginal income tax rate and prevented him from receiving tax benefits available to taxpayers with lower incomes.
IRS: An individual’s federal income tax is computed on the basis of his or her taxable income. Child support payments are nondeductible personal expenses, regardless of whether those expenses are paid directly or through withholding. (INFO 2015-0008)