Social Security Taxes for 2014-2015: What You Need to Know
Social security is a fantastic benefit that helps many in the US to live even when they cannot work, or have reached a certain age. In some cases, social security income might be used to support the individual, their spouse, or other dependents. Each year, there are updates to the current social security tax code. These are the rules that must be followed when filing your federal taxes on these benefits. To learn more about social security taxes in 2014-15, read on.
Social Security Maximum Changes
The most recent change to these laws are that the maximum (or the amount where social security is withdrawn from your check for the year) can be both a good thing and a bad thing. If you are interested in putting back more for yourself for your retirement, or supporting the system, the rise in the maximum to $117,000 from $113,700 might be a good thing. Any income earned over that limit will not have social security deducted from it. When social security is deducted from income above this limit, you will receive those deductions back as part of your regular tax refund for the year.
Tax Rate Changes
There was no tax rate change this year in how much of your earnings it withdrawn and held for social security. These taxes (which are currently 6.20%) are taken out of your paycheck automatically. You can usually see how much is withheld each paycheck by looking at your paystub. For those who are self-employed, the tax might be a bit more. If you need any guidance on this, be sure to ask your accountant or tax preparation professional. Chances are they can help you to better understand the taxes that you might owe, or those that you have already paid that year.
For more information about social security taxes in the coming years (including 2015), we highly recommend you visit the social security website (www.ssa.gov). There you can learn more about legislation as it happens. You can also find handy calculators for things like benefits, retirement savings, online accounts for those receiving benefits and more. As these laws change from year to year, we cannot really predict what might happen in the future. You can, however, keep yourself up-to-date with any developments. You can also influence social security law by taking action and voting regularly.