The Social Security Administration (SSA) reviews key numbers each year and usually makes adjustments. In a recent release, the SSA announced what is and is not changing for 2022.
Here are the key changes:
- The maximum taxable earnings for the Social Security portion rises from $142,800 to $147,000. (There is no limit on the Medicare portion.)
- Exempt amounts under the earnings test rise from $18,960/year to $19,560/year. For those under normal retirement age, $1 in benefits will be withheld for every $2 in earnings above the limit.
- The maximum benefit rises from $3,148/month to $3,345/month.
- Social Security and Supplemental Security Income beneficiaries will receive a 5.9% COLA for 2022.
Not changing are:
- The tax rates, which remain at 7.65% for employees and 15.30% for the self-employed.
- The additional 0.9% in Medicare taxes for those earning at least $200,000 ($250,000 for married couples filing jointly).
For further details read the fact sheet on the SSA website.
Have questions? Contact us at 703-218-3600 or click here. To review our personal financial planning articles, click here. To learn more about MCB’s tax practice and our tax experts, click here.
Subscribe to the MCB Blog and get all new MCB blog posts sent directly to your inbox.
©2021