Reuter Accounting & Tax, Inc. NEWSLETTER       2011 Social Security Changes Fact Sheet SOCIAL SECURITY   Cost-of-Living Adjustment (COLA): Monthly Social Security and Supplemental Security Income (SSI) benefits will not automatically increase in 2011 as there is no increase in the Consumer Price Index (CPI-W) from the third quarter 2008, the last year a COLA was determined, to the third quarter of 2010. Other important 2011 Social Security information is as follows:   Tax Rate:                                           2011                            2012 Employee                                   7.65%                         7.65% Self-Employed                          15.30%                        15.30% NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings. Maximum Taxable Earnings: Social Security (OASDI only)          $106,800                          $110,100 Medicare (HI only)                                              N o L i m i t   Quarter of Coverage: Earnings needed to earn one                 $1,120                         $1,130 Social Security Credit   Retirement Earnings Test Exempt Amounts: Under full retirement age                       $14,160/yr.                 $14,640/yr.                 ($1,180/mo.)                   ($1,220/mo.) NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. The year an individual reaches full          $37,680/yr.                  $38,880/yr. retirement age                                       ($3,140/mo.)                ($3,240/mo.) NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit. There is no limit on earnings beginning the month an individual attains full retirement age. Social Security Disability Thresholds: Substantial Gainful Activity (SGA) Non-Blind                                $ 1,000/mo.                    $1,010/mo. Blind                                        $1,640/mo.                  $1,690/mo. Trial Work Period (TWP)                     $ 720/mo.                    $ 720/mo. SSI Federal Payment Standard: Individual                                              $674/mo.                    $698/mo. Couple                                                 $1,011/mo.                     $1,048/mo.   SSI Resources Limits: Individual                                              $2,000                         $2,000 Couple                                                 $3,000                         $3,000   SSI Student Exclusion: Monthly limit                                         $1,640                         $1,700 Annual limit                                           $6,600                         $6,840    Back to Newsletter