Social Security Taxes in 2009
Tip It!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
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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January 9th, 2009 at 1:00 pm
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.
January 9th, 2009 at 6:45 pm
How does this work with married people?
January 9th, 2009 at 6:47 pm
As I understand it, this limit is on a per-individual basis.
January 15th, 2009 at 3:33 pm
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.
October 1st, 2009 at 8:46 pm
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.
December 3rd, 2009 at 3:41 pm
Do you get back OASDI taxes when you file income tax?