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The following information is derived from the Social Security Website.
2005 SOCIAL SECURITY CHANGES
Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2003 through the third quarter of 2004, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 2.7 percent COLA for 2005. Other important 2005 Social Security information is as follows:
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Return to Social Security Index Page
Tax Rate
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2004
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2005
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Employee
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7.65%
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7.65%
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Self-Employe d
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15.30%
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15.30%
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NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings.
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Return to Social Security Index Page
Maximum Earnings Taxable:
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2004
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2005
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Social Security (OASDI only)
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$87,900
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$90,000
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Medicare (HI only)
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No Limit
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Return to Social Security Index Page
Quarter of Coverage:
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2004
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2005
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Earnings required
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$900
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$920
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Retirement Earnings Test Exempt Amounts:
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2004
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2005
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Under full retirement age NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
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$11,640/yr. ($97040/mo.)
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$12,000/yr. ($1,000/mo.)
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Year individual reaches full retirement age NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.
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$31,080/yr. ($2,590/mo.)
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$31,800/yr. ($2,650/mo.)
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There is no limit on earnings beginning the month an individual attains full retirement age (65 and 4 months for retirees born in 1939; 65 and 6 months for those born in 1940).
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Social Security Disability Thresholds
Substantial Gainful Activity
Non-Blind (2004) $810/mo. (2005) $830/mo.
Blind (2004) $1,350/mo. (2005) $1,380/mo.
Trial Work Period (2005) $580/mo. (2005) $590/mo.
Maximum Social Security Benefit: Worker Retiring at Full Retirement Age
2004 (Age 65 and 4 months) ($1,825/mo.)
2005 (Age 65 and 6 months) ($1,939/mo.)
NOTE: For retirees born in 1939, full retirement age is 65 and 4 months; for those born in 1940, it is 65 and 6 months. Full retirement age will gradually increase to age 67 for those born in 1960 or later.
SSI Federal Payment Standard:
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2004
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2005
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Individual
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$564/mo.
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$579/mo.
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Couple
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$846/mo
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$869/mo.
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SSI Resources Limits:
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2004
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2005
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Individual
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$2,000
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$2,000
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Couple
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$3,000
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$3,000
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SSI Student Exclusion Limits:
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2004
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2005
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Monthly Limit
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$1,370
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$1,410
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Annual Limit
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$5,520
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$5,670
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Return to Social Security Index Page
Estimated Average Monthly Social Security Benefits Payable in January 2005:
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Before 2.7% COLA
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After 2.7% COLA
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All Retired Workers
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$ 930
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$955
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Aged Couple, Both Receiving Benefits
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$1,532
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$1,574
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Widowed Mother and Two Children
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$1,927
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$1,979
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Aged Widow(er) Alone
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$ 896
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$ 920
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Disabled Worker, Spouse and One or More Children
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$1,458
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$1,497
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All Disabled Workers
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$ 871
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$ 895
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