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Social Security wage base increases to $132,900 for 2019

By: Tax Advisors | Jan 28, 2019


The Social Security Administration (SSA) has announced that the wage base for computing the Social Security tax (OASDI) in 2019 will increase to $132,900. This is up from $128,400 for 2018 ($127,200 for 2017).

For 2019, an employee will pay:

 6.2% Social Security tax on the first $132,900 of wages (maximum tax is $8,239.80 [6.2% of $132,900]), plus

1.45% Medicare tax on the first $200,000 of wages ($250,000 for joint returns; $125,000 for married taxpayers filing a separate return), plus

2.35% Medicare tax (regular 1.45% Medicare tax + 0.9% additional Medicare tax) on all wages in excess of $200,000 ($250,000 for joint returns; $125,000 for married taxpayers filing a separate return). (Code Sec. 3101(b)(2))

For 2019, the self-employment tax imposed on self-employed people is:

12.4% OASDI on the first $132,900 of self-employment income, for a maximum tax of $16,479.60 (12.40% of $132,900); plus

2.90% Medicare tax on the first $200,000 of self-employment income ($250,000 of combined self-employment income on a joint return, $125,000 on a separate return), (Code Sec. 1401(a), Code Sec. 1401(b)), plus

3.8% (2.90% regular Medicare tax + 0.9% additional Medicare tax) on all self-employment income in excess of $200,000 ($250,000 of combined self-employment income on a joint return, $125,000 for married taxpayers filing a separate return). (Code Sec. 1401(b)(2))


Tags: TaxTips, Tax, Income Tax, SanDiego, California, Social Security, Social Security Tax, SSA, Wages

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