2016 SSA Changes
2016 SOCIAL SECURITY CHANGES
(Used, Courtesy of The United States Social Security Administration)
Cost-of-Living Adjustment (COLA):
Monthly Social Security and Supplemental Security Income (SSI) benefits will not automatically increase in 2016 as there was no increase in the Consumer Price Index (CPI-W) from the third quarter of 2014 to the third quarter of 2015. Other important 2016 Social Security information is as follows:
Tax Rate: 2015 2016
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. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.
Maximum Taxable Earnings: 2015 2016
Social Security (OASDI only) $118,500 $118,500*
Medicare (HI only) N o L i m i t
Quarter of Coverage: 2015 2016
$1,220 $1,260
Retirement Earnings Test Exempt Amounts: 2015 2016
Under full retirement age $15,720/yr.
($1,310/mo.)$15,720/yr.* ($1,310/mo.)
The year an individual reaches full retirement age
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.
$41,880/yr. ($3,490/mo.)$41,880/yr.* ($3,490/mo.)
Social Security Disability Thresholds:
20152016
Substantial Gainful Activity (SGA) Non-Blind Blind $1,090/mo. $1,820/mo. $1,130/mo. $1,820/mo.*
Trial Work Period (TWP)$780/mo.$ 810/mo.
Maximum Social Security Benefit:
20152016
Worker Retiring at Full Retirement Age$2,663/mo.$2,639/mo.**
SSI Federal Payment Standard:
20152016
Individual$733/mo.$ 733/mo.*
Couple$1,100/mo.$1,100/mo.*
SSI Resources Limits:
20152016
Individual$2,000$2,000
Couple$3,000$3,000
SSI Student Exclusion:
20152016
Monthly limit$1,780$1,780*
Annual limit$7,180$7,180*
Estimated Average Monthly Social Security Benefits Payable in January 2016:
All Retired Workers $1,341
Aged Couple, Both Receiving Benefits $2,212
Widowed Mother and Two Children $2,680
Aged Widow(er) Alone $1,285
Disabled Worker, Spouse and One or More Children $1,983
All Disabled Workers $1,166
* Because there is no COLA, by law these amounts remain unchanged in 2016.
** A decrease in full maximum benefits occurs when there is no COLA, but there is an increase in the national average wage index.
