 |
jb update 10/16/2012: The wage base for 2013 was confirmed at $113,700.
The Social Security Administration trustees recently projected the wage base for 2013. This is the maximum amount of wage income that an individual earns for the year that is subject to Social Security withholding tax. For 2013, this amount is projected at $113,700.
The new amount is $3,600 more than the 2012 wage base, which is set at $110,100, for an increase of 3.27%. Keep in mind that this is only the increase in the taxed wage base, and there is little correlation between this and any potential increase in benefits for the year.
Future years’ estimated wage bases are projected as follows:
2014: $117,900
2015: $123,000
2016: $128,400
These are only projections, each year in October the SSA trustees will set the amount for the coming year.
The latest edition of A Social Security Owner's Manual, 2013 Edition, can be purchased by clicking this link. If you'd prefer the Kindle version (and let's face it, ALL the cool kids do!), you can find that at this Kindle version link.
The latest edition of 
Click the link to pick up a copy of 
And if you've come here to learn about queuing waterfowl, I apologize for the confusion. You may want to discuss your question with Lester, my loyal watchduck and self-proclaimed "advisor's advisor".
[...] 2013 Social Security Wage Base Projected [...]
Sorry, I meant Jim!
Hi Ben,
Thanks for the information and the projections. The tax man is relentless. Would you mind telling me if the social security wage base refers to gross income, AGI, MAGI, etc.? The IRS doesn’t seem to define the wage base’s basis on its website for some reason.
Thank you,
Rich
Rich, the wage base refers to gross income. This tax is applied to wages or earnings received, even if they’re deferred (such as into a 401(k) plan).
jb