Social Security
Social Security Maximum
Year
Percent
Taxable Income
Medicare
Percent
Income Subject
to Medicare Tax
2000
6.2%
76,200
1.45%
All income
2001
6.2%
80,400
1.45%
All income
2002
6.2%
84,900
1.45%
All income
2003
6.2%
87,900
1.45%
All income
2004
6.2%
87,900
1.45%
All income
2005
6.2%
90,000
1.45%
All income
2006
6.2%
94,200
1.45%
All income
2007
6.2%
97,500
1.45%
All income
2008
6.2%
102,000
1.45%
All income
2009
6.2%
106,800
1.45%
All income
2010
6.2%
106,800
1.45%
All income
2011
4.2%
106,800
1.45%
All income
2012
4.2% -
110,100
1.45%
All income
2013
6.2%
113,700
1.45%
All income
2014
6.2%
117,000
1.45%
All income
2015
6.2%
118,500
1.45%
All income
2016
6.2%
118,500
1.45%
All income
2017
6.2%
127,200
1.45%
All income
2018
6.2%
128,400
1.45%
All income
2019
6.2%
132,900
1.45%
All income
2020
6.2%
137,700
1.45%
All income
3. In 2011, the percent deducted for Social Security was lowered to 4.2% to help
stimulate the economy. How much did a taxpayer earning more than the maximum
taxable income save in 2011 due to the lower rate? (Note: use the table hereabove)
4. Mr. Jackson had two jobs in 2005. The first job, in which he earned $74,007, was
from January to August, and the second job, in which he earned $35,311, was from
August to the
end of the year. The employer for the second job took out Social
Security taxes on
all of Mr. Jackson's income. As a result, he paid too much Social
Security tax. How much should
he be refunded? (Note: use the table hereabove)