The Social Security Administration 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).
This is just a summary. Further details, including disability threshold changes, are available on the SSA site.
If you have additional questions regarding Social Security Administration reviews on key numbers, contact a lawyer, like one from Bott & Associates, Ltd.