Hello, Fellow Taxpayers,
October 18, 2019 – The Social Security Administration has announced the following changes for 2020. Please feel free to share the information with folks that you know that are on Social Security, contemplating taking it or is making close to the SS wage limit. The data is important.
Social Security Annual Update and Increase
- The gross Social Security benefits are increasing by 1.6% for 2020. Some of the other limits change by different percentages. Here is the information for 2020 (followed by 2019 amounts):
- The amount of earnings subject to Social Security taxes increases to $137,700 (up from $132,900 for 2019).
- The amount of earnings required to be subjected to Social Security taxes in order to receive a quarter of coverage increases to $1,410 (up from $1,360).
- Earnings limitations for taxpayers who have not reached full retirement age (before having to repay Social Security benefits) increases to $18,240 ($1,520/month) [up from $17,640 ($1,470/month)].
- Earnings limitations for taxpayers who reach full retirement age in the current year (before having to repay Social Security benefits) increases to $48,600 ($4,050/month) [up from $46,920 ($3,910/month)]. (“Full retirement age” is age 66 for those born in 1943-1954.)
- The amount of the SSI Federal Payment Standard increases to $783/month (up from $771/month). For a married couple this increases to $1,175 (up from $1,157/month). The SSI Student Exclusion Limits increase to $1,900/month with an annual limit of $7,670 (up from $1,870/month with the annual limit of $7,550).
- The Substantial Gainful Activity earnings increase to $1,260/month for non-blind disabled recipients (up from $1,220) while the blind disabled recipient amount increases to $2,110 (up from $2,040/month). The Trial Work Period earnings increase to $910/month (up from $880/month).
The full Fact Sheet can be found on Social Security’s web site www.socialsecurity.gov<http://www.socialsecurity.gov> by entering FACT SHEET in the Search box.
So until next time,
C YA,
Jeffrey “Not Taking Benefits Yet” Schneider
