October 23, 2014 2:33 pm

Social Security Wage Base Increased for 2015

The Social Security Administration announced the 2015 wage base used for figuring the Social Security portion of FICA and self-employment tax. For 2015, this wage base is $118,500, up from $117,000 in 2013; there is no limit for the Medicare portion of FICA. This increase is consistent with a 1.7% increase in Social Security benefits paid in 2015. As a result, the FICA payment for an employee with taxable compensation up to the wage base is $7,347 in 2015. A self-employed person with net earnings up to the wage base will pay $14,694, one half of which is deductible.

There are no changes in the ages for retirement: full retirement for those born in 1943 through 1954 remains at 66 years; early retirement can begin at age 62. The amount that those under the full retirement age can earn without any loss of benefits in 2015 is $1,310 per month, up from $1,290 per month in 2014. Once this income threshold is exceeded, they lose $1 for each $2 above the earnings limit.

Source: Social Security Fact Sheet 10-22-14

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The excess of the tax assessed by the IRS over the amount reported on your return.

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