2011 Social Security Tax Cuts

1
by on December 29, 2010 at 5:40 pm

What to expect -

There will be a 2% decrease in Social Security withholding in 2011. We are normally taxed at 6.2% up to the first $106,800 earned. The benefit comes out to about $20 per thousand. This could mean a maximum savings of $2,136 (per spouse).

Irony -

  • Since we’re losing the making work pay credit, low income households may very well see a decrease in tax benefits in comparison to last year.
  • Isn’t Social Security underfunded as it is? How will this help to catch up?
  • By lowering Social Security withholding instead of providing an untaxed credit, they are able to still tax all of your savings – aka – social security wages and non social security wages are subject to the Federal Income Tax. The making work pay credit is not…

Great job guys… Please don’t become air traffic controllers :)

1 Comment

  • James

    29/12/2010

    Unreal that there’s an instance of double taxation that’s considered a benefit…

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