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Social Security / Medicare

Social Security Contribution Limits

2009 - $102,000

2010 - $106,800

Social Security Tax Rate

Employee - 6.2%

Employer - 6.2%

Medicare Contribution Limits

2009 - None, All income is taxed

2010 - None, All income is taxed

Medicare Tax Rate

Employee - 1.45%

Employer - 1.45%

Social Security Benefits

Subject to Income Tax -- 2009 and 2010

Base Amount of modified AGI causing Social Security benefits to be taxable Up to 50% Taxable Up to 80% Taxable
Married Filing Jointly $32,000-$44,000 $44,000+
Single $25,000-$34,000 $34,000+

Full Retirement Age 65 years 10 months

Portion of Benefit Paid at age 62 - 75.8%

Maximum Earnings before Social Security benefits are reduced

  2009 2010
Before Full Retirement (lose $1 for every $2 of earnings) $13,560 $14,160
Year of Full Retirement $36,120 $37,650
After Full Retirement No Limit No Limit
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