Social Security Taxes in 2009
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FacebookA few days ago, I wrote about the FICA-OASDI and FICA-HI taxes. For those that missed it, the former goes toward Social Security whereas the latter goes toward Medicare.
As I noted in that article, Social Security taxes are capped, such that (assuming you make enough money) you only have to pay this tax on a portion of your income. In 2008, the cap kicked in at $102,000, but…
In 2009, the cap is increasing by $4,800. As such, you’re on the hook for Social Security taxes on your first $106,800 in earned income but, beyond that, you only have to pay the Medicare portion.
Published on January 9th, 2009 - 5 Comments
Filed under: Taxes
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About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
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I just squeeked over the limit last year, you gotta love that 6% raise at the end of the year. But I doubt my raise this year will be enough to keep up with the adjustment, most companies are cutting back on raises.
Comment by Miss M — Jan 9th 2009 @ 1:00 pmHow does this work with married people?
Comment by thomas — Jan 9th 2009 @ 6:45 pmAs I understand it, this limit is on a per-individual basis.
It’s ridiculus they took double in social security taxes from me than federal taxes i almost passed out when i looked at my check.
Comment by julie — Jan 15th 2009 @ 3:33 pmmy ytd is over $106k,but I’m still paying ss tax , but I take advantage of medical flex and parking tax free bene from my job. Do i have deduct that from my ytd
Comment by jim — Oct 1st 2009 @ 8:46 pmthat would make the numbers right.