Ask Terry Questions 2018 Social Security Taxes

2018 Social Security Taxes

By Terry Savage on March 23, 2018 | Taxes & Economy

Will Social Security be taxed the same way in 2018 as it has been taxed in prior years?

Terry Says

If you're talking about the payroll deduction, the answer is they will take a little bit more out of your paycheck.   For 2018,  an employee will pay: a. 6.2% Social Security tax on the first $128,700 of wages (maximum tax is $7,960.80 [6.2% of $128,400]).  The tax "cap" has been raised slightly. Now, if you're talking about taxes on Social Security BENEFITS, you should pay less in taxes, assuming that the new tax brackets put you in a lower bracket, or that the standard deduction of $12,000 per person diminishes your taxable income in some other way.



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