The Social Security Administration announced changes for 2013. While Social Security beneficiaries will receive only 1.7% more in benefits in 2013, the wage base for purposes of the Social Security portion of FICA and self-employment tax increases by more than 3%. The wage base for 2013 is $113,700, up from $110,100 in 2012.
Note: It is not yet clear whether the 2-percentage-point reduction in the worker portion of Social Security taxes will be extended for 2013. If not, then the Social Security tax for employees is 6.2% of wages up to $113,700, for a maximum of $7,049.40. Self-employed individuals face double this amount, or $14,098.80. The Medicare tax continues to be 1.45% of all wages, or 2.9% of all net earnings from self-employment; there is no wage base limit for this tax.
The amount that those who are under the full retirement age can earn before losing any Social Security benefits is $15,120 in 2013, up from $14,640 in 2012. Once this limit is exceeded, benefits are reduced by $1 for every $2 over the earnings limit.
Debt on which a person is not personally liable. In case of nonpayment, the creditor must foreclose on property securing the debt. At-risk rules generally bar losses where there is nonrecourse financing, but an exception applies to certain nonrecourse financing for real estate.