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I asked my account and he confirmed that it is investment income and not subject to Social security and medicare taxes. I guess I should have just done that in the first place instead of waiting a week. Any way I'm sure someone will need this information and god knows it not easy to find. anyway thx to @chepner for helping clarify my question, wish just ...


A quick calculation (your pay increase of $20k/yr times 40%, an estimate of your marginal tax rate inclusive of FICA) suggests your withholding should increase by $8000 per year, or a little over $300 every 2 weeks. Your thought of "increase withholding by 30% of the old withholding" would fall considerably short -- my rough estimate is that your ...

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