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:
|
| Year | Earnings Subject
to Social Security |
Tax Rate | Maximum Tax |
|---|
| 2010 | $106,800 | 6.20% | $6,621.60 |
|---|
| 2009 | $106,800 | 6.20% | $6,621.60 |
|---|
| 2008 | $102,000 | 6.20% | $6,324 |
|---|
| 2007 | $97,500 | 6.20% | $6,045 |
|---|
| 2006 | $94,200 | 6.20% | $5,840.40 |
|---|
| 2005 | $90,000 | 6.20% | $5,580 |
|---|
| 2004 | $87,900 | 6.20% | $5,449.80 |
|---|
| 2003 | $87,000 | 6.20% | $5,394 |
|---|
| 2002 | $84,900 | 6.20% | $5,263.80 |
|---|
| 2001 | $80,400 | 6.20% | $4,984.80 |
|---|
| 2000 | $76,200 | 6.20% | $4,724.40 |
|---|
|
|
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:
|
| Year | Income Required for
Quarter of Coverage |
|---|
| 2010 | $1,120 |
|---|
| 2009 | $1,090 |
|---|
| 2008 | $1,050 |
|---|
| 2007 | $1,000 |
|---|
| 2006 | $970 |
|---|
| 2005 | $920 |
|---|
|
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.
|
| Year | Seniors who have not
reached Full Retirement Age (FRA)
50% |
Seniors reaching Full Retirement Age (FRA)
33% |
|---|
| Monthly Limit | Annual Limit |
Monthly Limit | Annual Limit |
|---|
| 2010 | $1,180 | $14,160 | $3,140 | $37,680 |
|---|
| 2009 | $1,180 | $14,160 | $3,140 | $37,680 |
|---|
| 2008 | $1,130 | $13,560 | $3,010 | $36,120 |
|---|
| 2007 | $1,080 | $12,960 | $2,870 | $34,440 |
|---|
| 2006 | $1,040 | $12,480 | $2,770 | $33,240 |
|---|
| 2005 | $1,000 | $12,000 | $2,650 | $31,800 |
|---|
|
|
Maximum Social Security Benefits (assuming retirement at full retirement age and maximum contributions after age 21):
|
| Year | Monthly Limit | Annual Limit |
|---|
| 2010 | $2,323 | $27,876 |
|---|
| 2009 | $2,323 | $27,876 |
|---|
| 2008 | $2,185 | $26,220 |
|---|
| 2007 | $2,116 | $25,392 |
|---|
| 2006 | $2,053 | $24,636 |
|---|
| 2005 | $1,939 | $23,268 |
|---|
|
|
Medicare Part B Premiums:
|
| Year | Monthly Premium | Annual Premium | Max Income (Single) for This Rate | Max Income (Joint) for This Rate |
|---|
| 2010 | $96.40 | $1,157 | $85,000 | $170,000 |
|---|
| 2009 | $96.40 | $1,157 | $85,000 | $170,000 |
|---|
| 2008 | $96.40 | $1,157 | $82,000 | $164,000 |
|---|
| 2007 | $93.50 | $1,122 | $80,000 | $160,000 |
|---|
| 2006 | $88.50 | $1,062 | N/A | N/A |
|---|
| 2005 | $78.20 | $938 | N/A | N/A |
|---|
|
|
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.
|
