Social Security

Social Security Cost-of-living adjustment (COLA)20162017
For Social Security and Supplemental Security Income (SSI) beneficiaries0.00%0.30%
Tax rate–employee20162017
FICA tax — Employee7.65%7.65%
Social Security (OASDI) portion of tax6.20%6.20%
Medicare (HI) portion of tax1.45%11.45%1
Tax rate–self-employed20162017
Self-Employed15.30%15.30%
Social Security (OASDI) portion of tax12.40%12.40%
Medicare (HI) portion of tax2.90%12.90%1

1 An additional 0.9% Medicare/hospital insurance tax (for a total employee contribution of 2.35%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). An additional 0.9% Medicare/hospital insurance tax (for a total Medicare portion of 3.8%) is assessed on self-employment income exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns).

Maximum taxable earnings20162017
Social Security (OASDI only)$118,500$127,200
Medicare (HI only)No limitNo limit
Quarter of coverage20162017
Earnings required$1,260$1,300
Retirement earnings test–exempt amounts–Under full retirement age–Benefits reduced by $1 for each $2 earned above:20162017
Yearly figure$15,720$16,920
Monthly figure$1,310$1,410
Retirement earnings test–exempt amounts–Year individual reaches full retirement age–Benefits reduced by $1 for each $3 earned above (applies only to earnings for months prior to attaining full retirement age):20162017
Yearly figure$41,880$44,880
Monthly figure$3,490$3,740
Retirement earnings test–exempt amounts–Beginning the month individual attains full retirement age20162017
No limit on earningsNo limit on earnings
Social Security disability thresholds20162017
Substantial gainful activity (SGA) for the sighted (monthly figure)$1,130$1,170
Substantial gainful activity for the blind (monthly figure)$1,820$1,950
Trial work period (TWP) (monthly figure)$810$840
SSI federal payment standard20162017
Individual (monthly figure)$733$735
Couple (monthly figure)$1,100$1,103
SSI resource limits20162017
Individual$2,000$2,000
Couple$3,000$3,000
SSI student exclusion limits20162017
Monthly limit$1,780$1,790
Annual limit$7,180$7,200
Maximum Social Security benefit20162017
Worker retiring at full retirement age (monthly figure)$2,639$2,687

Formula for Monthly Primary Insurance Amount (PIA)20162017
(90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y)X=$856 Y=$5,157X=$885 Y=$5,336

Medicare

Medicare monthly premium amounts–Part A (hospital insurance) premium20162017
Individuals with 40 or more quarters of Medicare-covered employment$0$0
Individuals with less than 40 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insuranceUp to $411Up to $413
Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who file an individual income tax return with income that is:20162017
Less than or equal to $85,000$104.90 / $121.802$109 / $1342
$85,001 – $107,000$170.50$187.50
$107,001 – $160,000$243.60$267.90
$160,001 – $214,000$316.70$348.30
Greater than $214,000$389.80$428.60
Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who file a joint income tax return with income that is:20162017
Less than or equal to $170,000$104.90 / $121.802$109 / $1342
$170,001 – $214,000$170.50$187.50
$214,001 – $320,000$243.60$267.90
$320,001 – $428,000$316.70$348.30
Greater than $428,000$389.80$428.60
Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who are married, but file a separate tax return from their spouse and lived with spouse at some time during the taxable year with income that is:20162017
Less than or equal to $85,000$104.90 / $121.802$109 / $1342
$85,001 – $129,000$316.70$348.30
Greater than $129,000$389.80$428.60

2 Most individuals will pay $104.90 for 2016, $109 (on average) for 2017; however, individuals who are not subject to the Social Security “hold harmless” provision will pay $121.80 for 2016, $134 for 2017.

Original Medicare plan deductible and coinsurance amounts–Part A (hospital insurance)20162017
Deductible per benefit period$1,288$1,316
Coinsurance per day for 61st to 90th day of each benefit period$322$329
Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days–nonrenewable)$644$658
Original Medicare plan deductible and coinsurance amounts20162017
Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period$161$164.50
Original Medicare plan deductible and coinsurance amounts–Part B (medical insurance) annual deductible20162017
Individual pays 20 percent of the Medicare-approved amount for services after deductible is met$166$183

Medicaid

Income threshold20162017
Monthly income threshold for income-cap states (“300 percent cap limit”)$2,199$2,205
Monthly maintenance needs allowance for at-home spouse20162017
Minimum 3$1,991.25$2,002.50
Maximum$2,980.50$3,022.50
Spousal resource allowance20162017
Minimum$23,844$24,180
Maximum$119,220$120,900

3 Amounts listed actually effective as of July of prior year; different amounts apply to Alaska and Hawaii.

Refer a friendTo find out more click here
IMPORTANT DISCLOSURES

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax and legal professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

This communication is strictly intended for individuals residing in the state(s) of PA. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2017.