Health & Fitness
Blog: Tax Information for 2012
The Social Security Administration has announced the new amounts for 2012. For the past two years these amounts did not change very much, if at all. This year there was inflation, amounts changed.
Paul French is the president of Paul French Tax Services in Johnston, Iowa. He will be blogging about the upcoming tax season and new information everyone could use.
Social Security Amounts for 2012
The Social Security Administration has announced the new amounts for 2012. For the past two years these amounts did not change very much, if at all. This year there was inflation, therefore the amounts changed.
The gross Social Security benefits increase for 2012 by 3.6%. We do not yet have the Medicare increase so it remains to be seen how much, if any, the net Social Security checks will increase.
The amount of earnings subject to Social Security taxes increases to $110,100.
The amount of earnings required to be subjected to Social Security taxes in order to receive a quarter of coverage increases to $1,130.
Earnings limitations for taxpayers who have not reached full retirement age (before having to repay Social Security benefits) increases to $14,640 ($1,220/month).
Earnings limitations for taxpayers who reach full retirement age in the current year (before having to repay Social Security benefits) increases to $38,880 ($3,240/month). (“Full retirement age” is age 66 for those born in 1943-1954.)
The maximum monthly Social Security benefits increases to $2,513.
The amount of the SSI Federal Payment Standard increase to $698/month. For a married couple this increases to $1,048/month. The SSI Student Exclusion Limits increases to $1,700/month with the annual limit increasing to $6,840.
The Substantial Gainful Activity earnings increase to $1,010/month for non-blind disabled recipients while the blind disabled recipients amount increases to $1,690/month. The Trial Work Period earnings remain the same at $720/month