Social Security Income Tax Limits 2011, 2012

You may be wondering what the Social Security income tax limits are. Believe it or not, there are limits to being taxed. The Social Security tax limit is 6.2% of your wages up to $106.800.

If you’re living life like me, paycheck to paycheck, it can be important to learn and understand the way your weekly or bi-weekly check is being diminished by various taxes.

One thing to keep in mind is that there are some online services that will have all of this information, and more, concerning any aspect of your taxes. They will even do the work and calculations for you when it comes time to file or if you simply want to take a look at an estimate of what your tax situation is going to look like according to their software.

Social Security Income Tax Limits

Most employers will take this out of your wages automatically. This tax is equivalent to 6.2% of your wages and the limit will be 6.2% of $106,800 which is $6,621.

For medicare taxes in 2011, the rate is 1.45% which is the same as it was in 2010. The self-employed rate is 2.9% on all earnings which can be offset by income tax provisions.

And for work credits, just like in 2010 earning $1,120 will earn you one credit.

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