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Social Security wages are those earnings that are subject to the Social Security portion of the FICA tax. Not all compensation qualifies as Social Security wages. Employees pay 6.2% of gross earnings as the Social Security tax, and employers must match this amount.
Earnings cap: The limit is $22,320 in 2024. It will rise to $23,400 in 2025. What gets held back: 50% of anything you earn over the cap. How it works: The Social Security Administration deducts...
Social Security Quick Calculator. Benefit estimates depend on your date of birth and on your earnings history. For security, the "Quick Calculator" does not access your earnings record; instead, it will estimate your earnings based on information you provide. So benefit estimates made by the Quick Calculator are rough.
The OASDI tax rate for wages paid in 2025 is set by statute at 6.2 percent for employees and employers, each. Thus, an individual with wages equal to or larger than $176,100 would contribute $10,918.20 to the OASDI program in 2025, and his or her employer would contribute the same amount.
Social Security benefits are typically computed using "average indexed monthly earnings." This average summarizes up to 35 years of a worker's indexed earnings. We apply a formula to this average to compute the primary insurance amount ( PIA ).
You will pay tax on your Social Security benefits based on Internal Revenue Service (IRS) rules if you: File a federal tax return as an "individual" and your combined income* is. Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits.
Social Security takes your 35 highest-income years and comes up with your average indexed monthly earnings (AIME). That's the basis for your earnings calculation.
The average Social Security benefit is about $1,862 per month in 2024. The maximum Social Security benefit for someone who retires at full retirement age is $3,822 in 2024. However, a...
With combined income above $34,000 (single) or above $44,000 (joint filing), up to 85% of benefits can be taxed. If you need clarification on whether your Social Security benefits are taxable,...
The maximum amount of earnings subject to Social Security tax is $160,200 in 2023. Earnings above the tax cap aren't taxed by Social Security or used to calculate retirement benefits.