2007-07-27 05:05:30 · 4 answers · asked by Adrenaline Junky 2 in Business & Finance ➔ Taxes ➔ United States
The maximum amount of wages subject to the social security tax for 2006 is $94,200. There is no limit on the amount of wages subject to the Medicare tax.
2007-07-27 05:07:33 · answer #1 · answered by snipergirl6988 2 · 1⤊ 1⤋
For 2007, the limit for the SS portion of FICA (6.2%) is $97,500. Medicare is withheld from all wages at 1.45%, however, with no limit.
2007-07-27 05:11:20 · answer #2 · answered by Bostonian In MO 7 · 4⤊ 0⤋
$94,200.
Means if you make $94K, you pay FICA on 100 percent of your earnings, while a person who makes $188,000 pays FICA on only 50 percent of their income. Tom Hanks only pays FICA on his first $94K, and nothing on the rest of his millions.
Doesn't seem fair, does it?
The simple way for the government to "save" Social Security, would be to remove the $94K cap . . . the Social Security program would last forever, that way.
2007-07-27 05:19:27 · answer #3 · answered by jimmeisnerjr 6 · 2⤊ 6⤋
Well, I can tell you that $95,000 is the cut off, but there are other issues at hand. Unless your within 10 years of retiring, I would not expect social security to benefit you at all.
2007-07-27 05:09:39 · answer #4 · answered by stevo 2 · 0⤊ 5⤋