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The wage base limit for social security tax withholding for 2008 is $102,000. The withholding is 6.2%, so the maximum per employee for the year is $6,324. Any amount withheld beyond that limit due to multiple employers is available as a credit against your income tax. If one employer erroneously withheld excess social security tax, that employer should make the correction.
Wiki User
∙ 15y ago
Wiki User
∙ 13y agoThe answer depends on your age and whether you're referring to Social Security retirement or disability benefits.
If you reach full retirement age this year, the earning cap will be lifted on the month of your birthday. If you have earned income exceeding $37,680 for the year, your benefits will be reduced by $1.00 for every $3.00 earned beyond that amount.
If you are a year or more below full retirement age, the maximum earning is only $14,160, and your benefits will be reduced by $1.00 for every $2.00 earned beyond that amount.
The excess income is fully deducted from your benefits beginning in January and continuing until the overage is completely offset -- in other words, you may not receive a Social Security check at all for several months, depending on how far over the maximum you've gone.
On the plus side, you probably continued paying into the Social Security fund while you worked, which can result in an increase in future monthly benefits paid.
Maximum Earnings, Retirement
If you've reached full retirement age (65 for people born prior to 1943; 66 for people born between 1943 and 1954), there is no limit to how much you can earn.
In the year you reach full retirement age, you can earn $37,680 annually, but for every $3.00 over the limit, $1.00 is withheld from your benefits until the month your reach full retirement age.
If you are under full retirement age, you can earn $14,160 per year without incurring a penalty. For every $2.00 over the limit, $1.00 is withheld from benefits.
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What is income tax paid for?
estate Social Security tax A+
Is social security a regressive or proportional tax?
Social Security Taxes are a Proportional Tax. A Percentage of a person's income is paid to Social Security, this is half of the total amount paid to them, the Other half of a person's Social Security Tax is paid by the Employer.
What tax is paid for retirement income?
estate Social Security tax A+
What is MED FICA tax?
MED tax is the tax that is paid to Medicare. FICA tax is the tax paid to pay for Social Security benefits.
Which taxes are paid by both the employer and employee at the same rate?
Social Security tax & Medicare tax
Did Social Security withholding go down on payroll checks?
A one-year reduction in Social Security withholding from individuals (not from their employers) was included in the Tax bill that was passed by Congress at the end of 2010. The lost tax income to Social Security will supposedly be paid to the Social Security Trust fund out of general tax revenues.
How much does social security tax take from a 815.00 paycheck?
How much tax on 815.00
How much does social security cost per year?
For 2008, the maximum social security tax withholding for an individual is $6,324, the tax on $102,000. For 2009, the maximum social security tax withholding for an individual is $6,622, the tax on $106,800.
What form do Social Security recipients get at tax time other than a W-2?
Social security recipients do not get a W-2 form. At tax time recipiants should receive a Form SSA-1099 for Social Security benefits paid.
Which tax withholding is required by the US Federal government?
You are required to have paid in at least a total equaling 90% of your total income tax paid in the previous tax year. If you do not have at least that much paid and applied to your tax for the current year through withholding and estimated tax payments then you will be subject to a tax penalty plus interest.
does Mississippi Tax Social Security Income?
does Mississippi Tax Social Security Income
What was the Social Security tax for 2001?
The Social Security tax cap for 2001 was $80,400.
