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What is the source of your second income?
Military retirement.
All income is wages.
Incorrect.
My military retirement is income, but it is not wages and therefore not subject to FICA.
Interest on my CD's is income, but not subject to FICA.
Dividends on our small amount of stocks is income, but not subject to FICA.
When I retire fully and draw mony out of my 401K that will be income, but not subject to FICA.
Capital gains, isn’t currently classified as such but should be. So should inheritance and all other sources of income.
So you agree not everyone pays FICA. Which is what I said.
No, what you previously implied was that FICA applied to income.
It doesn't, it only applies.
Now there are some government employees (selected state or local) that do not pay the SS portion of FICA because that government entity opt'ed out of SS and setup their own retirement system.
Medicare, which is also part of FICA is also has tiers. The only employees currently not paying the Medicare portion of FICA are those that were exempt in 1986 and have been in continous employment since then. That was almost 40 years ago, so you can imagine that the number of people in that group is tiny.
Also remember, that the only reason the entity they worked for could opt out of SS and Medicare in 1986 was because the entity had a program at least as good. So those employees were still paying, just into a different system.
WW