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”
Do you get back OASDI taxes when you file income tax?
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.
It’s ridiculus they took double in social security taxes from me than federal taxes i almost passed out when i looked at my check.
As I understand it, this limit is on a per-individual basis.
How does this work with married people?
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.