Any income you earn beyond the wage cap amount is not subject to the 6.2% Social Security payroll tax. For example, an employee who earns $180,000 in 2025 will pay $10,918.20 in Social Security taxes ($176,100 x 6.2%).
The maximum Social Security benefit for a worker retiring at full retirement age will increase from $3,822 in 2024 to $4,018 in 2025. Based on the increase in average wages, the maximum amount of earnings subject to the Social Security tax (taxable maximum) is going to increase to $176,100 from $168,600.
To get the most out of your benefit you need to plan carefully, however, since you could owe income taxes on as much as 85% of your Social Security. $45,864: Maximum Social Security benefit for someone retiring at full retirement age in 2024. 85%: Maximum portion of Social Security benefits subject to income taxes.
In 2025, if you're under full retirement age, the annual earnings limit is $23,400. If you will reach full retirement age in 2025, the limit on your earnings for the months before full retirement age is $62,160.
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
If your spouse dies, do you get both Social Security benefits? You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement. If you qualify for both survivor and retirement benefits, you will receive whichever amount is higher.
PAUL – Today, U.S. Representative Angie Craig announced new legislation to eliminate federal taxes on Social Security benefits for seniors. Rep. Craig's You Earned It, You Keep It Act would eliminate all federal taxes on Social Security benefits beginning in 2025 – putting money back into the pockets of retirees.
Taxpayers who are 65 or older can take an additional standard deduction, which is also adjusted for inflation. For tax year 2025, that amount is $2,000 for single filers and $1,600 for others.
At what age is Social Security no longer taxable? Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
To qualify to get $144 added back to your Social Security check, you can enroll in a Medicare Advantage plan that offers a Part B premium reduction or giveback benefit.
Cost-of-Living Adjustment (COLA) Information for 2025
The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $176,100. The earnings limit for workers who are younger than "full" retirement age (see Full Retirement Age Chart) will increase to $23,400.
Substantial income includes wages, earnings from self-employment, interest, dividends, and other taxable income that must be reported on your tax return. Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits. More than $34,000, up to 85% of your benefits may be taxable.
In 2024 and 2025, the federal income tax rates for each of the seven brackets are the same: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent. But the income ranges for each of those brackets changes every year, based on IRS inflation adjustments.
Social Security tax rate
The Social Security tax limit will rise to $176,100 in 2025. (The 2024 tax limit is $168,600.)
Taxes aren't determined by age, so you will never age out of paying taxes. People who are 65 or older at the end of 2024 have to file a return for tax year 2024 (which is due in 2025) if their gross income is $16,550 or higher. If you're married filing jointly and both 65 or older, that amount is $32,300.
Rise in standard deductions
For heads of households, it is $22,500 for tax year 2025, up $600 from tax year 2024. For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction increases to $15,000 for 2025, up $400 from 2024.
The 2024 and 2025 limit for joint filers is $32,000. However, if you're married and file separately, you'll likely have to pay taxes on your Social Security income.
Ninety-five percent of never-beneficiaries are individuals whose earnings histories are insufficient to qualify for benefits. Late-arriving immigrants and infrequent workers comprise the vast majority of these insufficient earners.
You aren't required to pay this tax on any income beyond the Social Security wage base limit. Employees and employers are each required to pay a 6.2% tax on wages. In 2025, the limit is $176,100, which means you'll pay no more than $10,918.20 in Social Security taxes ($176,100 x 6.2%) in 2025.
Each survivor benefit can be up to 100% of your benefit. The amount may be reduced if the women start benefits before their own full retirement age, but they don't have to share — the amount isn't reduced because you've had more than one spouse.
Program Description. Are you the surviving spouse or caregiver for the child of a worker who died? If so, you or the child(ren) may be eligible to get a lump-sum death payment of $255.
For a spouse who is not entitled to benefits on his or her own earnings record, this reduction factor is applied to the base spousal benefit, which is 50 percent of the worker's primary insurance amount.