3 Major Changes in Social Security Tax Laws for Triangle Seniors

Ambro, FreeDigitalPhotos.net (2)With our tax laws constantly changing every year, it’s no wonder that many Triangle seniors are confused about whether or not they need to pay Social Security taxes. This year, there are three major changes in the Social Security tax laws that AABS, Inc. can help seniors understand.

Keeping up-to-date with our IRS tax laws is not only confusing, but it’s also complicated. That’s why, many of our local seniors will visit with the professionals at AABS to ask questions and get their taxes prepared correctly. The staff at AABS are trained Certified Senior Advisors (CSA) who are qualified to ethically work with local seniors in North Carolina.

U.S. News reports that the major changes in Social Security taxes in 2015 that AABS can help seniors with:

  • Higher Tax Cap: The maximum taxable earnings for 2015 is $118,500 and that’s up $1,500 from 2014. This may mean higher taxes as a result of this change for some Triangle seniors. If a retiree earns more than the maximum tax cap, then Social Security taxes are not paid on the amount over the cap.
  • Increased Social Security Payments: Every year, Social Security payments are adjusted to reflect inflation. In 2015, Social Security payments will increase 1.7% due to inflation. That increases the average monthly benefit for retirees from $1,306 to $1,328.
  • Social Security Withholding Amounts: Retirees who are collecting Social Security and turn age 66 in 2015 can earn up to $41,880 before every $3 earned; above that amount will result in $1 being withheld for Social Security. Seniors who are under age 66 and collecting Social Security can earn up to $15,720 in 2015 before Social Security withholds $1 for every $2 earned above that limit. However, seniors who are over age 66 have no earnings limits and their Social Security benefits need to be recalculated.

Confusing? It certainly is, and that’s why AABS, Inc. has become a trusted name in Southwest Wake County. Call AABS today to get your tax and retirement questions answered ethically and accurately.

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This is an “information only” post and is not considered to be legal financial advice. It is simply meant to be helpful to all those who read it. It is brought to you by the professional team at AABS, INC., located in Apex, NC.

Call us at 919 303-3345 or email us at: info@aabsinc.com

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AABS Inc.

PO Box 1677

Apex, NC 27502

 

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