Tax Tip of the Week | No. 412 | Social Security Earnings Amount Increases

Tax Tip of the Week | June 21, 2017 | No. 412 | Social Security Earnings Amount Increases

For 2015-2016, the maximum wage amount subject to social security tax was $118,500.  For 2017, the maximum wage amount subject to social security withholding will be $127,200.If you are an employee, this will be the wage amount shown in Box 3 of your W-2.If you are self-employed, you will be subject to social security tax up to $127,200 of your net business income.There remains no earnings limit subject to Medicare tax withholdings.  Any earnings for employees over $127,200 will still be subject to a 1.45% Medicare tax (2.90% Medicare tax if self-employed).Especially for those who are self-employed, you may need to adjust your quarterly estimated payments.  As always, give us a call if you have any questions.You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.Rick Prewitt – the guy behind TTW...until next week.