Oct 10, 2018 · The maximum income cap amount subject to the Social Security tax for 2025 is $176,100. Any excess earnings you make won't be taxed. Learn more here.

Feb 26, 2025 · The repeal law, called the Social Security Fairness Act, is retroactive to cover 2024 benefit payments. Those affected will receive a lump-sum repayment for WEP or GPO withholding last year along with an increase in their regular benefit.

Oct 10, 2018 · The special earnings limit rule is an exception to Social Security’s earnings test — the cap on the amount you can make from work in a year without Social Security reducing your benefits. The cap only applies if you are under full retirement age , which is 66 and 8 months for people born in 1958, two months later for those born in 1959 and ...

Nov 2, 2023 · Starting in 2025, however, savers ages 60, 61, 62 and 63 have a higher catch-up cap. Those in this group can stash an additional $11,250 in a workplace plan, for a total of $34,750. The SECURE 2.0 Act, a 2022 federal law designed to promote retirement saving, included a provision boosting the catch-up limit for the 60-63 set.

Oct 10, 2018 · In other words, if your income exceeds the cap on yearly earnings for beneficiaries who have not yet reached full retirement age, Social Security will withhold money from your retirement payments. Regardless of how much your spouse earns, it will not affect how much is held back from your benefit.

Oct 10, 2018 · In 2025, if you collect benefits before full retirement age and continue to work, the Social Security Administration (SSA) will temporarily withhold $1 in benefits for every $2 you earn over $23,400.

Oct 10, 2018 · First, Social Security adjusts your earnings for historical changes in U.S. wages, takes your 35 best-paid years and produces what it calls your average indexed monthly earnings (AIME). Only income up to the maximum taxable earnings — the annually adjusted cap on how much of your earnings are subject to Social Security taxes — is counted ...

Oct 10, 2018 · There is a maximum family benefit, however — a cap on the total amount a family can collect from Social Security on an individual worker’s earnings record (including spousal, children’s and survivor benefits).

Dec 27, 2024 · For an individual, the cap is $2,000; for a couple, $3,000 combined. According to a 2003 Social Security issue paper, the rationale for paying eligible spouses comparatively less than they’d get as singles is that by sharing a home and financial resources, a couple can live more economically than two people living alone.

In 2025, that cap is $23,400. Suppose you earn $30,000 from a part-time job. The difference between that and the earnings limit is $6,660, so $3,330 — half that amount — would be deducted from your benefits for the year.