SSA Updates Key Numbers for 2022

The Social Security Administration reviews key numbers each year and usually makes adjustments, and this year, the changes are significant. In a recent release, the SSA announced what is and is not changing for 2022.

Here are the 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.

Not changing are:

  • The tax rates, which remain at 7.65 percent for employees and 15.30 percent for the self-employed
  • The additional 0.9 percent 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.

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Laura specializes in income tax return preparation, compliance, and research for individuals and businesses. She also is experienced in preparing compiled and reviewed financial statements, individual and S-Corporation taxation, multi-state taxation, and income tax credits including the R&D credit.