Social Security changes for 2013
Michael Nickerson and his dog Hunter
Michael Nickerson and his dog Hunter
The biggest change in Social Security taxes this year is that we all will pay a little more. The two-percentage-point payroll tax reduction expired at the end of 2012, and Congress did not extend it. And the earnings wage base has gone up to $113,700.
New this year are two Medicare surtaxes: 0.9 percent on earned income for high-income households and 3.8 percent on net investment income. The surtax on earned income applies to wages and self-employment income; it kicks in when total earnings top $200,000 for single and $250,000 for couples filing jointly.
The 3.8 percent Medicare surtax applies to single and heads of households with modified adjusted gross income of $200,000 or more, or $250,000 for couples. It applies to trusts and estates with undistributed net investment, too.
Earnings tests are eased slightly for the first year of receiving benefits, though this rule may be limited.
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