Showing posts with label social Security benefits 2019. Show all posts
Showing posts with label social Security benefits 2019. Show all posts

Monday, December 17, 2018

2019 Social Security Wage Base Set


The Social Security Administration recently announced some changes that will go into effect in the coming tax year. The organization has set the maximum amount of wages to be subjected to the old age, survivors, and disability insurance tax. The amount, as of 2019, will be $132,900, an increase from the previous tax year.   


Tax Rate
The tax rate for this tax is 6.2%, with both the employee and employer being responsible for paying the same amount. Self-employed workers, however, will be responsible for paying the tax at a 12.4% rate to the limit.

Medicare Hospital Insurance tax

It is also important to note that the Medicare hospital insurance tax is set at 1.45% for the coming tax year, with employees and employers each paying the same amount and with the self-employed paying 2.9%.

Social Security Benefits

One final announcement from the organization was that those who receive Social Security benefits would get a 2.8% cost of living adjustment. The Social Security Administration has also stated that the earnings test related to how much income benefit recipients may earn without a reduction of benefits is $17,460 before reaching retirement age. The amount taxpayers may make in the year they reach full retirement is $46,920.

Anytime changes like these are made, people are often confused about if and how they will be affected. If you are unsure of how these changes affect you or have questions about how to most benefit from these changes, speak with a tax professional. The right professional can help to ensure that you can navigate any tax changes with the most benefit and the least detriment to you, yet another reason why having a good tax professional on your side is always a smart idea.