OUR THOUGHTS ON:

2014 Social Security Changes

Tax

By Thomas Lisak

The following is a summary of the 2014 Social Security thresholds that impact both working and retired Americans:

Cost of Living Increase (COLA) The COLA for 2014 will be 1.5%.

Higher wage base.  Social Security tax must be paid (by both the employee and the employer) on the first $117,000 of wages in 2014.  This is an increase of $3,300 over the 2013 wage base of $113,700. 

Higher earnings limit.  Beneficiaries between the ages of 62 and 66, who are also working, can earn up to $15,480 in 2014, after which $1 in benefits will be withheld for every $2 of earned income above the earnings limit.

In the year an individual reaches full retirement age, the earnings limit in 2014 for earnings during the months prior to attaining full retirement age for those receiving early benefits increases from $40,080 to $41,400, after which $1 in benefits will be withheld for every $3 of earned income above the earnings limit.

There is no earnings limit beginning with the month an individual beneficiary attains full retirement age.

Maximum Social Security benefits.  For workers retiring at full retirement age, the maximum benefit increases from $2,533 per month to $2,642 per month.

© 2013 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

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Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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