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Question about how married, filing jointly, affects the cap on payroll taxes (social security and the like, as opposed to income tax):

Fool A & Fool B are married.

Fool A is self-employed, and earns $140,000 per annum.

Fool B is a cubicle slave, and earns $50,000 per annum.

If these Fools file separately, Fool A would pay payroll taxes on the first $95,000 of her income (roughly, it changes every year), but not on the $45,000 in excess of that cap. Fool B would pay payroll taxes on all $50,000 of his income.

But what if they file jointly? Would the IRS add up their combined income ($190,000), multiply the cap by 2 ($190,000), and decide that the entire combined income is subject to payroll taxes? Or would Fool A still benefit from the cap, earning $45,000 free of payroll taxes?

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