For the 2010 tax year, the answer depends on your age and whether you're drawing Social Security benefits for retirement or disability.
Retirement
If you've reached full retirement age (65 for people born prior to 1943; 66 for people born between 1943 and 1954), there is no limit to how much you can earn.
In the year you reach full retirement age, you can earn $37,680 annually, but for every $3.00 over the limit, $1.00 is withheld from your benefits until the month your reach full retirement age.
If you are under full retirement age, you can earn $14,160 per year without incurring a penalty. For every $2.00 over the limit, $1.00 is withheld from benefits.
Disability
People on disability can earn up to $1,000 per month ($12,000 per year) for most disabilities, or $1,640 per month ($19,680 per year) for anyone legally blind. Earning more than these limits would be considered engaging in Substantial Gainful Activity (SGA), would trigger a continuing disability review, and likely result in an end to the person's disability status with Social Security.
Any month a disabled person earns more than $720.00 is counted toward the nine-month trial work period, and may result in a continuing disability review (CDR).
If you are 62 years old in 2010, you will reach full retirement age at 66. Under 2010 SSA guidelines, people who have not yet reached full retirement age can earn only $14,160 per year without incurring a penalty. For every $2.00 over the limit, $1.00 is withheld from benefits. There is an exception for the first year of early retirement, though (in this case, age 62).
In the first year, there is no limit on the amount of income you can earn prior to the month you retire. You will not be penalized for pre-retirement income. For the remainder of the year, you will receive a full benefit check for each month in which you earn $1,180 or less (one-twelfth of $14,160).
If you earn more than the maximum allowed, the Social Security Administration will withhold your monthly benefit check beginning in January of the following year until the overage is completely offset.
Fourteen of the 50 states tax Social Security benefits (through 2010):Same rate as Federal GovernmentMinnesotaNebraskaNorth DakotaRhode IslandVermontWest VirginiaTax Social Security based on Total IncomeConnecticutIowa (Phasing out tax levy from 2008-2014)Kansas (Only taxed if AGI is more than $75,000)Missouri (Will complete phase-out in 2010)MontanaAdds Federally Untaxed Social Security Income back to AGI*ColoradoNew MexicoUtah*These states apply broad age-determined income exclusions.
A one-year reduction in Social Security withholding from individuals (not from their employers) was included in the Tax bill that was passed by Congress at the end of 2010. The lost tax income to Social Security will supposedly be paid to the Social Security Trust fund out of general tax revenues.
No. Congress recently announced there will be no cost of living adjustment (COLA) for Social Security benefits in 2011. Earn-income limits will remain at 2010 levels.
Accessing the income tax rate for 2010-2011 is simple. Just call or go by your local IRS or Social Security office. They usually have copies of the tax forms there.
This varies for each individual. You need to contact the Social Security Administration at 1-800-772-1213, and the Department of Veterans' Affairs at 1-800-827-1000, to learn the answer to your question.
2009 cn't be filed until the year is over, and before April 15 2010
Yes. At present, Missouri taxes Social Security benefits based on total income. This will phase out at the end of the 2010 tax year. There will be no state tax on benefits received in 2011.
The 2010 cap is the same as in 2009, $106,800.00, at which point the Social Security amount withheld would be $6,621.60 (6.2%). There is no cap on the Medicare insurance contribution, so the 1.45% amount will continue to be withheld on all earnings, and will be matched by your employer at the 1.45% rate for a total 3.90% for the year.
For the year 2008 the amount was Social Security Limit $102,000 and the Maximum Social Security Contribution was $6,324.00. The date today is July 27 2010 and the following would apply for the year 2010. When you have one employer the amount of FICA ((OASDI) Old Age Survivor and Disability Insurance) for your social security would stop once your wages with the withheld social security amount reach 106800 and social security amount withheld would be 6621.60. You do not have any cap on the MEDICARE insurance contribution amount.
Any amounts of earned income money that you have received for providing your services worked for would be a part of the earnings test for 2010 of 14160 amount against your SSB amount.
No. Congress announced in late October 2010 that there will be no cost of living adjustment (COLA), or pay increase, for Social Security recipients in 2011. The Social Security Administration will continue issuing checks at 2009/2010 levels because reports indicate inflation has not increased significantly since the SSA instituted a 5.8% increase effective January 2009.Earned-income limits will also remain at 2010 levels.
Prime Votes - 2010 Social Security 1-2 was released on: USA: 22 October 2010