Maximum taxable earnings for 2005?

Question

In 2005 the maximum earned taxable amount was $90,000 with $5,540 as the max deducted, once the $90,00 was reached is Social Secruity still deducted from your pay check then refunded, or is it no longer deducted with the check stub reading $0 deducted but still showing the maximum amout in your ytd?

Answer 1

The limit for 2006 is $94,200. Once your pay reaches this level, your employer should stop withholding FICA tax from your check. If you work more than one job and your total income from both is above the limit, both employers will withhold FICA and you will receive any excess when you file your return.

Answer 2

If you have only one employer, they stop taking out social security once the maximum is reached. Your deduction won't show zero though, since the portion that is for medicare doesn't have a limit, so that still is deducted.

If you have multiple employers, each will deduct the full amount until you reach the max at their company, and you'll get the overpayment back when you file your annual return, or if you owe, the overpayment will be applied toward your amount owed.

Answer 3

I am assuming that you are talking about the maximum amount taxable to Social Security tax. If that is the case, once you reach the Maximum amount, the employer should cease deducting the SS tax. Thus, the final portion of your last sentence is correct.

Answer 4

Just to be clear, you are discussing maximums for Social Security taxes. Their is no maximum for income taxes. Your question in not clear on that point.