First, some good news. The tax cap will not change for 2016. What does this mean? It means that there will be no change in the maximum amount of earnings subject to Social Security tax –it remains at $118,500.
But that means…. There is no increase in the earnings limit. If you are under age 65 for and make more than $15,720 but are collecting Social Security benefits, you will have $1 withheld for every $3 in excess of the earnings limit.
There will be no raises in 2016. Social Security payments are adjusted upward to keep pace with inflation. For the third time since 2010, there will be no cost-of-living increase. In fact, it is possible that some payments to those who first sign up for Social Security in 2016 may receive slightly less than they expected due to no cost-of-living adjustment.
Please log on to www.ssa.gov and check your benefits.
