3. Social Security tax limit
In 2026, the Social Security taxable wage cap is projected to rise to $183,600, up from $176,100 in 2025. This increase means high earners could pay up to $11,383.20 in Social Security taxes, about $465 more than the year before.
Taxes stop once you hit the cap, but all wages remain subject to Medicare’s 1.45% tax, plus an extra 0.9% for higher-income earners.
4. Earnings test in 2026
If you work while collecting Social Security, part of your benefits may be withheld if your earnings exceed set limits. In 2026, the estimated limit for those under full retirement age is $24,360 ($1 withheld for every $2 earned above it).
For those reaching full retirement age in 2026, the limit rises to $64,800 ($1 withheld for every $3 earned above it). Once you reach full retirement age, there’s no earnings cap, and withheld benefits are restored.
I dont understand we work the majority of our life paying in social security and income tax and now its time to retire why are we paying tax on our social security income that we already paid while we worked . I think that is double dipping.
Taking SS at 62 is not a small reduction. It’s like 30% less. You obviously didn’t do your homework and listened to ill-informed people. What are your other sources of income? If you don’t have any other income investments, then you planned poorly. SS was never meant to support your retirement on its own. Don’t blame SS because you can’t pay your bills. Because you took early SS you don’t get a bump up when you reach FRA.
I worked as a Musician all my life. I will turn 76 this year. My manager told me several years ago that I should file my SS retirement early because I just don’t make enough $. I was informed that my monthly payment Will be reduced by a small amount because of early retirement. My question is why after I finally reach my FRA, why shouldn’t I get my full money payment at that point. The $ I receive now are not enough to make my monthly payments. The cost of everything has gone up much more than the government says. In Ca. the creed has caused every bill that I have, and I do mean every one of them, almost 40-50%. I still work, have to as long as I can. I served in the Army, was drafted in 1970. I’ve some how paid all taxes. I was even audited once as well. The Govenment has failed us. The present people in charge are thugs and obviously are serving there needs no us. The two party’s even call or text sometimes 6 or 7 times a day asking for $. I want that to stop. Something needs to be done or there will be some sort of uprising. We have been lied to!!!
When the S.S. faces insolvency in 7 years then we seniors should automatically be enrolled in the program that the congress critters are in. After all, it was they that was using our Social Security as their own piggy bank.
I agree!
Not Congress or any other entity should be able to raid the Social Security Trust Fund. Kee your hands off!
FRA for someone born in 1958 last year was 66 and 8 months not 66and 6 months. You should correct that on your info.
Will there ever be a chance that our cola raise will not be almost all taken for medIicare? It helps us very little to get a cola raise, when most of it is taken back. It would be nice, when the cost of living gos up so much, to get to keep it for a change!!!!!
why are they doing this to us seniors. We have worked and paid taxes all our working years and now you want to lower our ss., how are we suppose to live?
How are govt employees stealing?