Give and Take at the SSA


Starting in January 2008, the maximum earnings subject to Social Security tax will rise 4.6%, from $97,500 to $102,000, marking the first time the taxable maximum exceeds $100,000. The Social Security Administration expects nearly 12 million workers will pay higher taxes as a result. The $4,500 increase in maximum taxable earnings surpasses the $3,300 increase from 2006 to 2007.

On a salary of $102,000 or more, the Social Security tax in 2008 will be $6,324, up $279 from 2007’s maximum of $6,045. The tax rate of 6.2%, established in 1990, will not change.

The SSA also announced a 2.3% cost-of-living adjustment on benefits payments in 2008 based on the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers .

Source: Social Security Administration, www.ssa.gov.

SPONSORED REPORT

Keeping client information safe in an age of scams and security threats

A look at the Dirty Dozen tax scams and ways to protect taxpayer information.

TAX PRACTICE CORNER

More R&D tax help

"Can I use the R&D credit?" PATH Act enhancements make the credit more attractive to a wider range of taxpayers.

QUIZ

News quiz: Tax-related data breach explained

News about a data breach that affected about 100,000 people, the IRS’s budget for the fiscal year, and the 2018 health spending account limits received attention recently. See how much you know with this short quiz.