| There is a maximum amount of earnings (wages and net profit from self-employment) on which you pay Social Security taxes each year.
The maximum amount has changed many times throughout the years. For 2008, the maximum amount of taxable earnings is $102,000. For 2009, the maximum amount of taxable earnings will be $106,800.
Before 1994, there also was a maximum amount on which you paid Medicare taxes, but that maximum has been removed. You now pay Medicare taxes on all your wages and your net profit from self-employment.
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www.socialsecurity.gov
