Answer
\[\$18,980\]
Work Step by Step
FICA tax can be calculated by multiplying the total of the taxable amount to their tax rates mentioned in the FICA tax rate table given in the textbook.
Compute the FICA tax by substituting the values in the formula as mentioned below:
\[\begin{align}
& \text{FICA }\text{tax}=\text{Taxable amount}\times \text{Tax rate} \\
& =\left( \$110,000\times13.3percent\right)+\left\{\left(\$260,000-\$110,000\right)\times2.9percent\right\}\\&=\$14,630+\$4,350\\&=\$18,980\end{align}\]
Hence, FICA taxes owed by a self-employed person is\[\$18,980\].
