Dec 01, 2017
The maximum amount of wages in 2018 subject to the 6.2% Social Security tax will rise from $127,200 to $128,700. This represents an increase of $93 in the maximum amount of Social Security tax a taxpayer could pay. There is no limit on the amount of wages subject to the other portion of the FICA tax, the 1.45% Medicare tax.
The Social Security Administration also announced that Social Security beneficiaries will get a 2% increase in benefits in 2018. The average retiree will receive an increase of $27 a month ($46 per couple). However, many retirees will find most, or all, of the increase eaten up by a jump in Medicare Part B premiums for 2018, which are deducted from their monthly Social Security checks.Among the other increases is the amount a worker under full retirement age can earn before he or she has Social Security benefits reduced. The limit increases from $16,920 for 2017 to $17,040 for 2018, after which $1 in benefits is withheld for every $2 earned above the limit.