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, |
$1,695 |
$1,793 |
| All Disabled Workers |
$1,006 |
$1,064 |
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