2014 SOCIAL SECURITY CHANGES

Cost-of-Living Adjustment (COLA):

Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2012 through the third quarter of 2013, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 1.5 percent COLA for 2014. Other important 2014 Social Security information is as follows:

Tax Rate:
2013 2014
Employee 7.65% 7.65%
Self-Employed 15.30% 15.30%
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. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.
 
Maximum Taxable Earnings:
2013 2014
Social Security (OASDI only) $113,700 $117,000
Medicare (HI only) N o   L i m i t
 
Quarter of Coverage:
2013 2013
  $1,160 $1,200
 
Retirement Earnings Test Exempt Amounts:
2013 2014
Under full retirement age

NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.

$15,120/yr.
($1,260/mo.)
$15,480/yr.
($1,290/mo.)
The year an 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.

There is no limit on earnings beginning the month an individual attains full retirement age.

$40,080/yr.
($3,340/mo.)
$41,400/yr.
($3,450/mo.)
 
Social Security Disability Thresholds:
2013 2014
Substantial Gainful Activity (SGA)
     Non-Blind
     Blind

$1,040/mo.
$1,740/mo.

$1,070/mo.
$1,800/mo.
Trial Work Period (TWP) $750/mo. $   770/mo.
 
Maximum Social Security Benefit:
2013 2014
Worker Retiring at Full Retirement Age $2,533/mo. $2,642/mo.
 
SSI Federal Payment Standard:
2013 2014
Individual $710/mo. $  721/mo.
Couple $1,066/mo. $1,082/mo.
 
SSI Resources Limits:
2013 2014
Individual $2,000 $2,000
Couple $3,000 $3,000
 
SSI Student Exclusion:
2013 2014
Monthly limit $1,730 $1,750
Annual limit $6,960 $7,060
 
Estimated Average Monthly Social Security Benefits Payable in January 2014:
Before
1.5% COLA
After
1.5% COLA
All Retired Workers $1,275 $1,294
Aged Couple, Both Receiving Benefits $2,080 $2,111
Widowed Mother and Two Children $2,583 $2,622
Aged Widow(er) Alone $1,225 $1,243
Disabled Worker, Spouse and One or More Children $1,914 $1,943
All Disabled Workers $1,131 $1,148