Social Security Fact Sheet - Financial Focus

What It Costs? Both you and your employer pay taxes for Social Security and Medicare. Self-employed persons pay the combined rate. Two separate payroll taxes for 2023 are withheld:

Social Security: 6.2% of wages up to $168,600.
Medicare: 1.45% of all wages plus a 3.8% surtax in top tax brackets.

When Am I Eligible To Receive Full Retirement Benefits? Full benefits are available between the ages of 65 and 67, depending on your birth date (benefits continue to grow to age 70). Use the following table to determine the age you qualify for full retirement benefits.

Full Benefits Table

Tax on Social Security Social Security benefits are taxable as income (including tax free income) reaches the following levels:

Tax On SSI Table

Retirement Earnings Limit If you begin to collect Social Security benefits before full retirement age, you can earn wages up to $22,320 for 2024. If your earnings exceed this amount your benefits are reduced $1 for every $2 above $22,320.

Checking Your Benefit You may check your benefits online at the Social Security website. Check the statement to be sure your wages have been credited properly. Mistakes happen!

Beware! In spite of all the estimates provided, the following caveat is included on the Social Security website.

"Without changes, in 2037 the Social Security Trust Fund will be able to pay only about 75 cents for each dollar of scheduled benefits." - Social Security Administration

(All figures provided by Social Security Administration 2024 - Information is subject to change. Consult with a legal or tax advisor prior to implementing any decision. )