In field 34: Retirement or Social Security is where you record deductions for retirement, social security, and medicare taxes for both the spouse and borrower. Currently, social security and medicare are 7.65% of gross pay. If veteran is self-employed, they amount to 15.3%. These figures may change from year to year and can be found in Circular E, Employer's Tax Guide, published by the IRS. Use this calculator to perform any calculations. Learn more about this topic in the Residual Income lesson. Refer to the VA Lender's Handbook for more details regarding Federal Income Tax.