Here are the key changes to Social Security taxes and benefits that are set to take effect on Jan. 1, 2022.
- Social Security recipients got a 1.3% raise for 2021, compared with the 1.6% hike that beneficiaries received in 2020.
- Maximum earnings subject to the Social Security tax also increased—from $137,700 a year to $142,800.
- Other changes for 2021 included an increase in how much money working Social Security recipients can earn before their benefits are reduced and a slight rise in disability benefits.
- Social Security tax rates remain the same for 2021: 6.2% on employees and 12.4% on the self-employed.
- It now takes $1,470 to earn a single Social Security credit, up $60 from 2020.