The Social Security Administration has announced some changes that will go into effect January 2019. Below is a summary of the changes and how it may affect you.
Supplemental Security Income (SSI) benefits will increase 2.8%
More than 67 million Americans will receive a cost of living adjustment [COLA] increase of 2.8% in their social security benefits. If you receive benefits, you are normally notified by mail in early December about your new Social Security benefit and SSI income amount.
Social Security Tax Rates stay the same in 2019
The majority of working Americans should not see a change to their Social Security tax payments, because those tax rates have not changed.
However, Maximum Taxable Earning has increased to $132,900
If you make more than $128,400 per year, there is some unpleasant news. The 2019 Social Security Taxable Income has increased by $4,500 to a maximum of $132,900. So, if you exceed that maximum, your paycheck will see the following changes:
Estimated Social Security Income Tax Increase on Taxable Income over $132,900 in 2019
| Employment Status | Tax Rate | Per Month | 2019 total |
| Employee | 7.65% | $29.00 | $344.25 |
| Self Employed | 15.30% | $58.00 | $688.50 |
Medicare Changes For 2019 Are Not Out…Yet
If you receive Medicare benefits, these changes affect your benefit amounts in 2019.
To download the PDF update from the Social Security Administration, click here..
