As we approach the end of 2021, Clearview Wealth Management provides you with the 2022 Contribution and Benefits limits. These were announced by Social Security and the IRS. Social Security 2021 2022 Cost-of-living Adjustment (COLA) for December (payable in January). 1.3% 5.9% FICA tax rate (combined rate is 7.65% for both employees and employers) Social Security Medicare (Hospital Insurance). An additional FICA tax of 0.9% applies to high-income beneficiaries with annual incomes above $200,000 ($250,000 for married couples filing jointly). 6.20% 1.45% 6.20% 1.45% Maximum Social Security earnings for tax contributions and benefits Medicare taxable earnings. $142,800 no limit $147,000 no limit Earnings required to earn one credit (max. of four credits per year). $1,470 $1,510 Retirement Earnings Test exempt amounts: Under full retirement age (FRA) throughout year (age 66 & 4 months) Reaches FRA in year (time before the month FRA is attained) FRA and over $18,960 $50,520 no limit $19,560 $51,960 no limit Gifts and Estates 2021 2022 Annual Exclusion for gifts $15,000 $16,000 Estate Exclusion Amount $11,700,000 $12,060,000 Deductions 2021 2022 Read on! →
The IRS and Social Security Administration have announced the limits for benefits and contributions for 2019. Click here to see what’s ahead for the coming year.
What is the most important number you possess which is with you from birth to death? Your Social Security number! Newborns receive their unique number within a few weeks of their birth, where it is used throughout their lives to be claimed as a dependent on their parent’s tax return, apply for that first job, to identify them for credit purposes and eventually to allow them to file for benefits based on their lifetime earnings. Because of the importance of this number throughout your life, it is equally important to protect and review the information tied to it throughout your life. How do you protect your Social Security number (SS#)? Don’t carry your card in your wallet. If your wallet is lost or stolen, thieves will likely have not only your SS#, but will probably get your driver’s license and other information. This can quickly lead to identity theft. Don’t give out your SS# to retailers, phone callers, or others. The practice of using your SS# as your user id for logons has been largely halted and should be Read on! →