Social Security Benefits to Increase 2.8 Percent in 2019
Social Security Benefits to Increase 2.8 Percent in 2019; Maximum Wage Base for OASDI Increases by $4,500
The Social Security Administration (SSA) issued cost-of-living information for the 2019 social security and supplemental security income (SSI) benefits. According to the SSA, such benefits will increase 2.8 percent in 2019 and 67 million Americans will be affected by the increase. The SSA also announced that maximum amount of earnings subject to the social security tax will increase to $132,900 in 2019. SSA website.
The Social Security Administration (SSA) issued a press release in which it stated that social security and supplemental security income (SSI) benefits for more than 67 million Americans will increase 2.8 percent in 2019. The 2.8 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 62 million social security beneficiaries in January 2019. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2018. The SSA noted that some people receive both social security and SSI benefits.
For 2019, the maximum amount of earnings subject to the social security tax (taxable maximum) will increase to $132,900 (up from $128,400).
The earnings limit for workers who are younger than “full” retirement age (age 66 for people born in 1943 through 1954) will increase to $17,640. The SSA deducts $1 from benefits for each $2 earned over $17,640. The earnings limit for people turning 66 in 2019 will increase to $46,920. The SSA deducts $1 from benefits for each $3 earned over $46,920 until the month the worker turns age 66. There is no limit on earnings for workers who are “full” retirement age or older for the entire year.
(Retrieved 10/25/2018 from Parker’s Federal Tax Bulletin, Issue 182)
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Richard Camp, CPA, PA blogs and all other multimedia content is provided for informational and educational purposes only and should not be construed as financial tax, accounting, legal, consulting or any other type of advice regarding any specific facts and circumstances, nor should they be construed as advertisements for financial services. Because accounting standards, tax law, and technologies are constantly changing, content in this blog could contain outdated information.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this website (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this website (or in any attachment).
Richard Camp, CPA, PA blogs and all other multimedia content is provided for informational and educational purposes only and should not be construed as financial tax, accounting, legal, consulting or any other type of advice regarding any specific facts and circumstances, nor should they be construed as advertisements for financial services. Because accounting standards, tax law, and technologies are constantly changing, content in this blog could contain outdated information.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this website (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this website (or in any attachment).