Social Security Taxes in 2009

A few days ago, I wrote about the FICA-OASDI and FICA-HI taxes. For those that missed it, the former goes toward Social Security whereas the latter goes toward Medicare.

As I noted in that article, Social Security taxes are capped, such that (assuming you make enough money) you only have to pay this tax on a portion of your income. In 2008, the cap kicked in at $102, 000, but…

In 2009, the cap is increasing by $4, 800. As such, you’re on the hook for Social Security taxes on your first $106, 800 in earned income but, beyond that, you only have to pay the Medicare portion.

6 Responses to “Social Security Taxes in 2009”

  1. Anonymous

    my ytd is over $106k,but I’m still paying ss tax , but I take advantage of medical flex and parking tax free bene from my job. Do i have deduct that from my ytd
    that would make the numbers right.

  2. Anonymous

    I just squeeked over the limit last year, you gotta love that 6% raise at the end of the year. But I doubt my raise this year will be enough to keep up with the adjustment, most companies are cutting back on raises.

Leave a Reply