Social Security Taxes in 2009

A 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 - 6 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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6 Responses to “Social Security Taxes in 2009”

  1. 1
    Miss M Says:

    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.

  2. 2
    thomas Says:

    How does this work with married people?

  3. 3
    nickel Says:

    As I understand it, this limit is on a per-individual basis.

  4. 4
    julie Says:

    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.

  5. 5
    jim Says:

    my 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
    that would make the numbers right.

  6. 6
    Nicole Molina-Carrazco Says:

    Do you get back OASDI taxes when you file income tax?

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