Getting Your Financial Ducks In A Row Rotating Header Image

2013 Social Security Wage Base Projected

Cardpunch operations at U.S. Social Security Administration

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.

Enhanced by Zemanta

3 Comments

  1. Rich Phillips says:

    Sorry, I meant Jim!

  2. Rich Phillips says:

    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

    1. jblankenship says:

      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

Get involved!

Discover more from Getting Your Financial Ducks In A Row

Subscribe now to keep reading and get access to the full archive.

Continue reading