The Social Security Administration has announced that the monthly Social Security and Supplemental Security Income (SSI) benefits will increase by 2.3 percent in 2008. This is the smallest increase in Social Security benefits in four (4) years. This increase will begin with the checks that Social Security beneficiaries receive in January 2008. Increased payments to SSI beneficiaries will begin on December 31.
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The average monthly Social Security check will increase from $1,055.00 to $1,079.00. For a married couple who both receive benefit checks the average total will increase from $1,722.00 to $1,761.00.
The average monthly Social Security check will increase from $1,055.00 to $1,079.00. For a married couple who both receive benefit checks the average total will increase from $1,722.00 to $1,761.00.
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Social Security and SSI benefits increase automatically each year based on the rise in the Bureau of Labor Statistics' Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), from the third quarter of the prior year to the corresponding period of the current year.
Social Security and SSI benefits increase automatically each year based on the rise in the Bureau of Labor Statistics' Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), from the third quarter of the prior year to the corresponding period of the current year.
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The earnings base for Social Security withholding on wages and the Social Security portion of Self-Employment Tax for 2008 is $102,000, up from $97,500 for 2007. So the maximum amount of Social Security tax to be withheld from wages for 2007 is $6,324 and the maximum Social Security portion of self-employment tax is $12,648.
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The standard Medicare Part B monthly premium will be $96.40 in 2008, an increase of $2.90, or 3.1 percent, from the $93.50 Part B premium for 2007. The 2008 amount is the smallest percentage increase in the Part B premium since 2001 and is $2.10 less than the increase in the premium for 2007. Thankfully the increase in Medicare premiums will not wipe out the increase in benefits..
The standard Medicare Part B monthly premium will be $96.40 in 2008, an increase of $2.90, or 3.1 percent, from the $93.50 Part B premium for 2007. The 2008 amount is the smallest percentage increase in the Part B premium since 2001 and is $2.10 less than the increase in the premium for 2007. Thankfully the increase in Medicare premiums will not wipe out the increase in benefits..
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The income-based Medicare Part B monthly premiums for 2008 are:
The income-based Medicare Part B monthly premiums for 2008 are:
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SINGLE:
Premiums - - - - Income of:
$ 96.40 - - - $82,000 or less
$122.20 - - - $82,001-$102,000
$160.90 - - - $102,001-$153,000
$199.70 - - - $153,001-$205,000
$238.40 - - - Above $205,000
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MARRIED FILING JOINT:
Premiums - - - - Income of:
$ 96.40 - - - $164,000 or less
$122.20 - - - $164,001-$204,000
$160.90 - - - $204,001-$306,000
$199.70 - - - $306,001-$410,000
$238.40 - - - Above $410,000
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MARRIED FILING SEPARATE:
Premiums - - - - Income of:
$ 96.40 - - - $82,000 or less
$199.70 - - - $82,001-$123,000
$239.40 - - - Above $123,000
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The income base used to determine these premiums is one’s Adjusted Gross Income (AGI) plus any tax-exempt municipal bond interest income (reported on Line 8b of the Form 1040).
The income base used to determine these premiums is one’s Adjusted Gross Income (AGI) plus any tax-exempt municipal bond interest income (reported on Line 8b of the Form 1040).
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The earnings limitations for 2008 are:
The earnings limitations for 2008 are:
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1) Under Full Retirement Age - $13,560.00 per year or $1,130.00 per month ($1.00 in benefits lost for every $2.00 in earnings above the limit).
1) Under Full Retirement Age - $13,560.00 per year or $1,130.00 per month ($1.00 in benefits lost for every $2.00 in earnings above the limit).
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2) The Year You Reach Full Retirement Age - $36,120.00 per year or $3,010.00 per month (applies only to earnings for months prior to reaching full retirement age - no limit on earnings beginning the month you reach full retirement age; $1.00 in benefits lost for every $3.00 in earnings above the limit).
2) The Year You Reach Full Retirement Age - $36,120.00 per year or $3,010.00 per month (applies only to earnings for months prior to reaching full retirement age - no limit on earnings beginning the month you reach full retirement age; $1.00 in benefits lost for every $3.00 in earnings above the limit).
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There is no limit on earnings beginning the month an individual reaches full retirement age.
TTFN
There is no limit on earnings beginning the month an individual reaches full retirement age.
TTFN
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