Cost-of-Living Adjustment (COLA):
Monthly Social Security and Supplemental Security Income (SSI) benefits will not automatically increase in 2016 as there was no increase in the Consumer Price Index (CPI-W) from the third quarter of 2014 to the third quarter of 2015. Other important 2016 Social Security information is as follows:
| Tax Rate: |
2015 | 2016 |
|---|---|---|
| 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. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent. |
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Maximum Taxable Earnings: |
2015 | 2016 |
| Social Security (OASDI only) | $118,500 | $118,500* |
| Medicare (HI only) | N o L i m i t | |
|
Quarter of Coverage: |
2015 | 2016 |
| $1,220 | $1,260 | |
|
Retirement Earnings Test Exempt Amounts: |
2015 | 2016 |
| Under full retirement age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. |
$15,720/yr. ($1,310/mo.) |
$15,720/yr.* ($1,310/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. There is no limit on earnings beginning the month an individual attains full retirement age. |
$41,880/yr. ($3,490/mo.) |
$41,880/yr.* ($3,490/mo.) |
|
Social Security Disability Thresholds: |
2015 | 2016 |
| Substantial Gainful Activity (SGA) Non-Blind Blind |
$1,090/mo. $1,820/mo. |
$1,130/mo. $1,820/mo.* |
| Trial Work Period (TWP) | $780/mo. | $ 810/mo. |
|
Maximum Social Security Benefit: |
2015 | 2016 |
| Worker Retiring at Full Retirement Age | $2,663/mo. | $2,639/mo.** |
|
SSI Federal Payment Standard: |
2015 | 2016 |
| Individual | $733/mo. | $ 733/mo.* |
| Couple | $1,100/mo. | $1,100/mo.* |
|
SSI Resources Limits: |
2015 | 2016 |
| Individual | $2,000 | $2,000 |
| Couple | $3,000 | $3,000 |
|
SSI Student Exclusion: |
2015 | 2016 |
| Monthly limit | $1,780 | $1,780* |
| Annual limit | $7,180 | $7,180* |
|
Estimated Average Monthly Social Security Benefits Payable in January 2016: |
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| All Retired Workers | $1,341 | |
| Aged Couple, Both Receiving Benefits | $2,212 | |
| Widowed Mother and Two Children | $2,680 | |
| Aged Widow(er) Alone | $1,285 | |
| Disabled Worker, Spouse and One or More Children | $1,983 | |
| All Disabled Workers | $1,166 | |
| * Because there is no COLA, by law these amounts remain unchanged in 2016.
** A decrease in full maximum benefits occurs when there is no COLA, but there is an increase in the national average wage index. |
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