Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2007 through the third quarter of 2008, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 5.8 percent COLA for 2009. Other important 2009 Social Security information is as follows:
| Tax Rate |
2008
|
2009 |
|---|---|---|
|
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. |
||
| Maximum Taxable Earnings: |
2008
|
2009
|
|---|---|---|
|
Social Security (OASDI only)
|
$102,000
|
$106,800
|
|
Medicare (HI only)
|
No Limit
|
|
| Quarter of Coverage: |
2008
|
2009
|
|---|---|---|
|
Earnings needed to earn one Social Security credit
|
$1,050
|
$1,090
|
| Retirement Earnings Test Exempt Amounts: |
2008
|
2009
|
|---|---|---|
|
Under full retirement age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. |
$13,560/yr.
($1,130/mo.) |
$14,160/yr.
($1,180/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. |
$36,120/yr.
($3,010/mo.) |
$37,680/yr.
($3,140/mo.) |
| There is no limit on earnings beginning the month an individual attains full retirement age. | ||
| Social Security Disability Thresholds: |
2008
|
2009
|
|
|---|---|---|---|
| Non-Blind |
$ 940/mo.
|
$ 980/mo.
|
|
| Blind |
$1,570/mo.
|
$1,640/mo.
|
|
|
Trial Work Period (TWP)
|
$ 670/mo.
|
$ 700/mo.
|
|
| Maximum Social Security Benefit:Worker Retiring at Full Retirement Age |
2008
|
2009
|
|---|---|---|
|
$2,185/mo.
|
$2,323/mo.
|
| SSI Federal Payment Standard: |
2008
|
2009
|
|---|---|---|
|
Individual
|
$ 637/mo.
|
$ 674/mo.
|
|
Couple
|
$ 956/mo.
|
$1,011/mo.
|
| SSI Resources Limits: |
2008
|
2009
|
|---|---|---|
|
Individual
|
$2,000
|
$2,000
|
|
Couple
|
$3,000
|
$3,000
|
| SSI Student Exclusion: |
2008
|
2009
|
|---|---|---|
|
Monthly Limit
|
$1,550
|
$1,640
|
|
Annual Limit
|
$6,240
|
$6,600
|
| Estimated Average Monthly Social Security Benefits Payable in January 2009: |
Before
5.8% COLA |
After
5.8% COLA |
|---|---|---|
|
All Retired Workers
|
$1,090
|
$1,153
|
|
Aged Couple, Both Receiving Benefits
|
$1,773
|
$1,876
|
|
Widowed Mother and Two Children
|
$2,268
|
$2,399
|
|
Aged Widow(er) Alone
|
$1,051
|
$1,112
|
|
Disabled Worker, Spouse and
One or More Children |
$1,695
|
$1,793
|
|
All Disabled Workers
|
$1,006
|
$1,064
|
