§3.03 FICA Contributions

Gross income is reduced by any employee or self-employed worker's contribution under the Federal Insurance Contributions Act (FICA). For persons not subject to FICA, you must deduct an amount not to exceed that allowed under FICA, but only if that amount is actually used to secure retirement or disability benefits for the parent. [FC §4059(b).] Under FICA, a percentage of earned income up to an annual limit is paid into Social Security, and an additional percent is paid into Medicare.