Social Security Amounts for 2021
The Social Security Administration has announced the new amounts for 2021. The gross Social Security benefits are increasing 1.3% for 2021. Some of the other limits change by different percentages. Here is the information for 2021 (followed by 2020 amounts):
The amount of earnings subject to Social Security taxes increases to $142,800 (up from $137,700 for 2020). This translates into an additional $316.20 of social security tax withholding. The employer would also match that amount and the self-employed would be subject to both parts at $632.40.
The amount of earnings required to be subjected to Social Security taxes in order to receive a quarter of coverage increases to $1,470 (up from $1,410).
Earnings limitations for taxpayers who have not reached full retirement age (before having to repay Social Security benefits) increases to $18,960 ($1,580/month) [up from $18,240 ($1,520/month)].
Earnings limitations for taxpayers who reach full retirement age in the current year (before having to repay Social Security benefits) increases to $50,520 ($4,210/month) [up from $48,600 ($4,050/month)]. (“Full retirement age” is age 66 for those born in 1943-1954 and age 66 years and 2 months for those born in 1955.)