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Social Security Program

Below are the important limits for the Social Security Program. More information is available at the Social Security Administration web site.

Social Security Tax Limits

For those fortunate enough to have income levels that reach the maximum level of social scurity taxation (or are close and hoping!), here are those limits:

YearEarnings Subject
to Social Security
Tax RateMaximum Tax
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Remember that the above is just OASDI and there is also a Medicare tax on all income (no limit or phase-out) of 1.45%, making the total current rate below the above limits 7.65%.

Another important number is the amount of earning required in order to be credited with a quarter of coverage:

YearIncome Required for
Quarter of Coverage
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Social Security Benefits

Here are important values for those receiving Social Security benefits but still working. These are the limits before you start to lose benefits. Above these limits your benefits are reduced by the percentage shown of your income over that limit.

YearSeniors who have not reached Full Retirement Age (FRA)
Seniors reaching Full Retirement Age (FRA)
Monthly LimitAnnual Limit Monthly LimitAnnual Limit
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Maximum Social Security Benefits (assuming retirement at full retirement age and maximum contributions after age 21):

YearMonthly LimitAnnual Limit
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Medicare Part B Premiums:

YearMonthly PremiumAnnual PremiumMax Income (Single) for This RateMax Income (Joint) for This Rate
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Note that beginning in 2007 there are Medicare Premium will be scaled based on income. The above amounts apply to individuals in the lowest bracket, with annual income less than that shown above for singles or couples filing joint.

"Tax software is no substitute for tax knowledge."

Any views expressed herein are based on our best information. The content of this web site was written as general information without specific individual information and thus may not apply in all situations. This material was not written, and cannot be used by the taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.

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Janelle Ogg, EA
Richard Ogg, EA