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This update provides new information for 2008 for many items such as Social Security taxes and benefits. By law, these numbers change automatically each year to keep the program up to date with increases in price and wage levels. Whether you are working or you are already getting Social Security benefits, these changes are important to you.
|
|
Information for people who are working |
Social Security and Medicare taxes
| Social
Security taxes |
2007 |
2008 |
Employee/employer
(each) |
6.2% on earnings up to $97,500 |
6.2% on earnings up to $102,000 |
Self-employed
*Can be offset by income tax provisions |
12.4%* on earnings up to $97,500 |
12.4%* on earnings
up to $102,000 |
| Medicare
taxes |
2007 |
2008 |
|
Employee/employer (each) |
1.45% on all earnings |
1.45% on all earnings |
Self-employed
*Can be offset by income tax provisions |
2.9%* on all earnings
|
2.9%* on all earnings
|
|
|
Work credits--When
you work, you earn credits toward Social Security benefits. You
need a certain number of credits to be eligible for Social Security
benefits. The number you need depends on your age and the type of
benefit for which you are applying. You can earn a maximum of four
credits each year. Most people need 40 credits to qualify for retirement
benefits. |
| |
2007 |
2008 |
| |
$1000 earns one credit |
$1,050 earns one credit |
|
|
Information for people who receive Social
Security benefits |
Earnings Limits
Under federal law, people who are receiving Social Security benefits who have not reached full retirement age are entitled to receive all of their benefits as long as their earnings are under the limits indicated below. For people born in 1943, the full retirement age is 66. The full retirement age will increase gradually each year until it reaches age 67 for people born in 1960 or later.
|
| |
2007 |
2008 |
At
full retirement age or older |
No limit on earnings |
No limit on earnings |
Under
full retirement age |
$12,960 / For every $2 over the limit, $1 is withheld from benefits. |
$13,560
/ For every $2 over the limit, $1 is withheld from benefits. |
In
the year you reach full retirement age |
$34,440 / For every $3 over the limit, $1 is withheld from benefits until the month you reach full retirement age. |
$36,120
/ For every $3 over the limit, $1 is withheld from benefits until
the month you reach full retirement age. |
| Disability beneficiaries’ earnings limits: If you work while receiving disability benefits you must tell us about your earnings no matter how little you earn. You may have unlimited earnings during a trial work period of up to nine months (not necessarily in a row) and still receive full benefits. Once you have completed your nine-month trial work period, we will determine if you are still entitled to disability benefits. You also may be eligible for other work incentives to help you make the transition back to work. |
| |
2007 |
2008 |
|
Substantial Gainful Activity (Non-blind) |
$900 per month |
$940 per month |
|
Substantial
Gainful Activity (Blind) |
$1,500 per month |
$1,570 per month |
|
Trial
work period month |
$640 per month |
$670 per month |
|
|
Information for people who receive Supplemental
Security Income (SSI) |
| Monthly federal SSI
payment (maximum)
|
| |
2007 |
2008 |
|
Individual |
$623 |
$637 |
|
Couple |
$934 |
$956 |
|
Monthly income limits |
|
Individual whose income is
only from wages |
$1,331 |
$1,359 |
|
Individual whose income is
not from wages |
$ 643 |
$ 657 |
|
Couple whose income is only
from wages |
$1,953 |
$1,997 |
|
Couple whose income is not
from wages |
$ 954 |
$
976 |
NOTE: If you have income, your monthly benefit generally will be lower than the maximum federal SSI payment. Remember, you must report all of your income to us. Some states add money to the federal SSI payment. If you live in one of these states, you may qualify for a higher payment. Your income can be greater than the limits indicated and you still may qualify. |
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|
Information for people on Medicare |
Most Medicare costs are increasing this year
to keep up with the rise in health care costs.
|
|
2007 |
2008 |
| Hospital Insurance
(Part A) |
|
For first 60 days in a hospital,
patient pays |
$992 |
$1024 |
|
For 61st through 90th days
in a hospital, patient pays |
$248 per day |
$256 per day |
|
Beyond 90 days in a hospital,
patient pays (for up to 60 more days) |
$496 per day |
$512 per day |
|
For first 20 days in a skilled
nursing facility, patient pays |
$ 0 |
$ 0 |
|
For 21st through 100th days
in a skilled nursing facility, patient pays |
$124 per day |
$128 per day |
|
Part A Premium Buy-In: The amount of the
premium you pay to buy Medicare Part A depends on the number of
Social Security credits you have earned. If you have:
|
| 40
credits |
$ 0 |
$ 0 |
|
30-39 credits |
$226 per month |
$233 per month |
|
less than 30 credits |
$410 per month |
$423 per month |
Medical Insurance (Part B) |
|
Premium |
$93.50 per month |
$96.40 per month** |
|
Deductible |
$131 per year |
$135 per year |
| |
After
the patient has paid the deductible, Part B pays for 80 percent
of covered services. |
| NOTE: If you get Medicare and your income is low, your state may pay your Medicare premiums and, in some cases, your deductibles and other out-of-pocket medical expenses. Contact your local medical assistance (Medicaid) agency, social services or welfare office for more information. |
**Standard monthly premium is $96.40. Some people with higher incomes pay higher premiums. |
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www.socialsecurity.gov
