Reply #42: You are incorrect

[nancyharris]

First, there is no such thing as “payroll taxes”. Money is deducted from your payroll by the Federal Government (based on your W-2 withholding) to PREPAY your income tax. Self-employed people do the same thing only they make quarterly payments.

Second. The $84K cut-off is for Social Security ONLY. No one pays SS taxes above $84K. All income and Medicare continue to be deducted (as a PREPAY for income tax) above $84K at a rate determined by your tax bracket. (You might also note the money one receives in Social Security is based on the amount they pay into SS. For instance a millionaire gets no more in Social Security payments than one who earns $85K).

Third. When you file your income tax (between January 1 and April 15) you either get a refund (because you PREPAYED too much) or you must pay more (if you PREPAYED too little).

Spend some time at the IRS web site.