October 26 2017
On October 13, 2017, the Social Security Administration (SSA) publicized a number of policy adjustments that will go into effect for 2018. The changes include the following:
- The maximum amount of wages subject to the 6.2% Social Security tax will rise from its current level of $127,200 to $128,700 (an increase of a little more than 1%);
- The maximum amount of Social Security tax a taxpayer could pay, therefore, will increase from $7,886.40 to $7,979.40, an increase of $93;
- Social Security beneficiaries will receive a 2% increase in benefits (on average, $27/month);
- An increase in the amount a worker under full retirement age can earn (from $16,920 to $17,040) before his/her Social Security benefits are reduced—beyond this earnings point, $1 in benefits is withheld for every $2 earned above the limit.
For more details, read the article in full at the Journal of Accountancy.