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Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2007 through the third quarter of 2008, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 5.8 percent COLA for 2009. Other important 2009 Social Security information is as follows: |
Tax
Rate |
2008 |
2009 |
Employee |
7.65% |
7.65% |
Self-Employed |
15.30% |
15.30% |
NOTE:
The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings. |
Maximum Taxable Earnings: |
2008 |
2009 |
|
$102,000 |
$106,800 |
Medicare (HI only) |
No
Limit |
Quarter of Coverage: |
2008 |
2009 |
Earnings needed to earn one Social Security credit |
$1,050 |
$1,090 |
Retirement Earnings Test Exempt Amounts: |
2008 |
2009 |
Under full retirement age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. |
$13,560/yr.
($1,130/mo.) |
$14,160/yr.
($1,180/mo.) |
The year an individual reaches full retirement
age
NOTE: Applies only to earnings
for months prior to attaining full retirement age. One dollar in
benefits will be withheld for every $3 in earnings above the limit. |
$36,120/yr.
($3,010/mo.) |
$37,680/yr.
($3,140/mo.) |
There is no limit
on earnings beginning the month an individual attains full retirement
age. |
Social Security Disability Thresholds: |
2008 |
2009 |
|
Non-Blind |
$ 940/mo. |
$ 980/mo. |
Blind |
$1,570/mo. |
$1,640/mo. |
|
$ 670/mo. |
$ 700/mo. |
Maximum Social Security Benefit:
Worker Retiring at Full Retirement Age |
2008
|
2009
|
|
$2,185/mo.
|
$2,323/mo.
|
SSI Resources Limits: |
2008 |
2009 |
Individual |
$2,000 |
$2,000 |
Couple |
$3,000 |
$3,000 |
Estimated Average Monthly Social Security Benefits
Payable in January 2009: |
Before
5.8% COLA |
After
5.8% COLA |
All Retired Workers |
$1,090 |
$1,153 |
Aged Couple, Both Receiving Benefits |
$1,773 |
$1,876 |
Widowed Mother and Two Children |
$2,268 |
$2,399 |
Aged Widow(er) Alone |
$1,051 |
$1,112 |
Disabled Worker, Spouse and
One or More Children |
$1,695 |
$1,793 |
All Disabled Workers |
$1,006 |
$1,064 |
|