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You can game your income to reduce the amount you must give back to the government.
The OASDI tax rate for wages in 2022 is 6.2% each for employers and employees. That means an employee earning $147,000 or more would pay a maximum of $9,114 into OASDI.
Otherwise, taxes in the range of 3.75% to 5.99% apply, resulting in a tax bite of between $66.91 and $106.87 monthly on the average Social Security benefit. Utah. Utah’s flat tax rate of 4.85% ...
It is also the maximum amount of covered wages that are taken into account when average earnings are calculated in order to determine a worker's Social Security benefit. In 2020, the Social Security Wage Base was $137,700 and in 2021 was $142,800; the Social Security tax rate was 6.20% paid by the employee and 6.20% paid by the employer.
The average estimated tax penalty in fiscal year 2023 jumped to about $500 from about $150 in 2022, according to the most recent IRS Data Book. ... in estimated tax penalties in 2023, nearly ...
However, if you’re already receiving benefits or want to make changes, the Social Security Administration advises filling out Form W-4V from the Internal Revenue Service. See: 10 Reasons You ...
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