Thursday, October 15, 2015

2016 SOCIAL SECURITY CHANGES




2016 SOCIAL SECURITY CHANGES
 
 
o Cost-of-Living Adjustment (COLA):


Monthly Social Security and Supplemental Security Income (SSI) benefits will not automatically increase in 2016 as there was no increase in the Consumer Price Index (CPI-W) from the third quarter of 2014 to the third quarter of 2015. Other important 2016 Social Security information is as follows:
2015 2016
 
 
o Tax Rate:


Employee 7.65% 7.65%

Self-Employed 15.30% 15.30%
NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.

o Maximum Taxable Earnings:


Social Security (OASDI only) $118,500 $118,500*

Medicare (HI only) N o L i m i t
o Quarter of Coverage: $1,220 $1,260

o Retirement Earnings Test Exempt Amounts:


Under full retirement age $15,720/yr. $15,720/yr.*

($1,310/mo.) ($1,310/mo.)

NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.

The year an individual reaches full $41,880/yr. $41,880/yr.*

retirement age ($3,490/mo.) ($3,490/mo.)

NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.


SSA Press Office 440 Altmeyer Building 6401 Security Blvd. Baltimore, MD 21235 410-965-8904 FAX 410-966-9973
There is no limit on earnings beginning the month an individual attains full retirement age.
o Social Security Disability Thresholds:


Substantial Gainful Activity (SGA)

Non-Blind $1,090/mo. $1,130/mo.

Blind $1,820/mo. $1,820/mo.*

Trial Work Period (TWP) $ 780/mo. $ 810/mo.
o Maximum Social Security Benefit: Worker Retiring at Full Retirement Age:


$2,663/mo. $2,639/mo.**
o SSI Federal Payment Standard:


Individual $ 733/mo. $ 733/mo.*

Couple $1,100/mo. $1,100/mo.*
o SSI Resources Limits:


Individual $2,000 $2,000

Couple $3,000 $3,000
o SSI Student Exclusion:


Monthly limit $1,780 $1,780*

Annual limit $7,180 $7,180*
o Estimated Average Monthly Social Security Benefits Payable in January 2016:


All Retired Workers $1,341

Aged Couple, Both Receiving Benefits $2,212

Widowed Mother and Two Children $2,680

Aged Widow(er) Alone $1,285

Disabled Worker, Spouse and $1,983

One or More Children

All Disabled Workers $1,166

* Because there is no COLA, by law these amounts remain unchanged in 2016.

** A decrease in full maximum benefits occurs when there is no COLA, but there is an increase in the national average wage index.


http://www.ssa.gov/news/press/factsheets/colafacts2016.html

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