Social Security, Medicare and Self-Employment Taxes
For 2007 you will pay Social Security and/or self-employment tax on your wages up to $97,500. For any wages you earn over $97,500, you will pay just the Medicare portion of the tax. Self-employed individuals are allowed an income tax deduction for 50% of the self-employment tax.
|
OASDI = Old Age, Survivor, and Disability portion of the Social Security tax> | |
|
OASDI |
Medicare |
Total | |
Employees |
6.20% |
1.45% |
7.65% | |
Self-employed |
12.40% |
2.90% |
15.30% |
| 2007 Social Security Earnings test | |
Worker Age |
Limit | |
62 years - 65 years and 8 months |
$12,960 | |
65 years and 8 months or older |
No Limit |
|
Income earned over the $12,960 limit is lost at the rate of $1.00 for every 2.00 earned. |
| Monthly Social Security Benefits at full retirement age
(the full retirement age in 2007 is 65 years and 8 months. To receive an estimate of your Social Security Benefits call Social Security at 1-800-772-1213) | |
Your age in 2007 |
Based on $50,000 yearly salary |
Based on $80,400+ Salary | |
65 |
$1,411 |
$1,660 | |
64 |
$1,450 |
$1,717 | |
63 |
$1,480 |
$1,762 | |
62 |
$1,522 |
$1,822 | |
61 |
$1,524 |
$1,837 | |
55 |
$1,537 |
$1,925 | |
50 |
$1,544 |
$1,960 |
|
