Each year, the Social Security Administration takes a fresh look at various numbers and usually makes changes. Read more for the recently announced 2022 changes, so you can make financial plans for the new year.
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.
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.
No Changes:
- 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.