Every year Social Security’s rules and regulations change. These changes are important because every year there are new income limits to receiving benefits or different criteria Social Security uses to determine if someone qualifies for benefits. To help keep people up-to-date on all the changes, Social Security has created the Fact Sheet. This Fact Sheet explains the changes from year-to-year. In this blog we will closely examine the major changes from 2017 to 2018.
Maximum taxable earnings
Social Security taxes only apply to a person’s earnings up to a certain amount. The majority of people pay Social Security taxes on 100 percent of their earnings, but higher earners only have to pay Social Security taxes up to $128,400 of their earnings in 2018. Every dollar earned over that amount is not taxed for Social Security purposes. Last year the amount was $127,200.
Quarter coverage
To be eligible for Social Security Disability Insurance (SSDI) benefits a worker has to have earned enough work credits. Social Security awards one work credit for every three months worked as long as the worker earned $1,320 over the same three-month period. Last year’s work-credit amount was $1,300.
SSI maximum payment
Supplemental Security Income (SSI) is a program that provides benefits to disabled and retired people who show the financial need for such benefits. Because it is a needs-based program, there are maximum limits on how much someone can receive in monthly benefits. The maximum amount for an individual in 2018 is $750 and $1,125 for a married couple who both receive SSI. This was increased from $735 for an individual and $1,103 for a married couple in 2017.
Average benefit
The average benefit amount for a person receiving Social Security benefits is $1,404 per month in 2018, which has increased from $1,377 in 2017.
