SOCIAL SECURITY AND MEDICARE CHANGES FOR 2022
There are changes that take effect in 2022 impacting those taxpayers who are currently retired or are contemplating retiring during 2022.
• The maximum income subject to Social Security tax is going up for 2022. The new maximum income subject to Social Security tax will be $147,000.
• The maximum a working retiree may earn without forfeiting some of their benefits is also increasing. For those who have not reached full retirement age, the maximum earnings for 2022 will be $19,650. Benefits will be reduced after that threshold by $1 for every $2 earned above that amount. The full retirement age depends on what year you were born, but generally begins at age 70 for purposes of determining allowable earnings while receiving Social Security retirement benefits.
• Social Security recipients will receive a 5.9% cost of living adjustment for payments received in 2022.
• Medicare Part A premiums are increasing for 2022 as are Part B premiums. Part A premiums will be $499 for those retirees who have less than 30 quarters of earnings prior to retirement, and $274 for those with 30-39 quarters of earnings prior to retirement. Part B premiums also are increasing to $170.10 per month, but may be higher depending upon your income.