Millions of Americans collect and benefit from Social Security every month.
9 out of 10 seniors over the age of 65 collect benefits during their retirement, which accounts for 33% of income for people of that age.
In order to qualify to collect the benefits, those applying need to have worked a certain number of years and paid Social Security taxes.
What you receive depends on your earnings, when you started receiving benefits, and what year you were born.
Depending on what you make for income as a senior, your benefits may be taxed.
The new Social Security tax limit in 2022
There is a maximum amount out of a person’s pay that can be taxed by Social Security.
This means high earning people will not have to pay taxes past a certain point in their income.
In 2021 the limit was $142,800.
This means for 2022 there will be more paid in taxes on people’s income.
If you make $147,000 in 2022, you will pay a total of $9,114 to the Old-Age, Survivors, and Disability Insurance program while your employer pays the same.
If you’re self-employed then your tax rate is 12.4%, instead of the 6.2% everyone else pays.