Social Security Contributions may increase in 2017. For tax year 2015 and 2016, social security tax applied to the first $118,500.00 of wages. For 2017, current projection is that this figure will increase to $126,000.00. That is an increase of just over 6.3%. For those who receive social security benefits, a modest increase is expected.
This is great news for social security beneficiaries, as they saw little to no increase for 2016. Since there was no cost of living adjustment (COLA) for this year, many of those receiving social security benefits may have felt the stagnation as a decrease in income.
Eileen Ambrose and Patricia Barry of AARP stated in their article Social Security COLA Projected for 2017,
Social Security’s more than 60 million beneficiaries are projected at this point to receive a tiny 0.2 percent cost-of-living adjustment next year, while some Medicare recipients could see steep premium increases.
Talk to a DFGTax professional today to see how you can benefit from the increase in social security or how you can be prepared for the slight increase in taxes.