 |  | | | | | Government Benefits
Social Security
| Social Security Cost-of-living adjustment (COLA) | 2024 | 2025 |
|---|
| For Social Security and Supplemental Security Income (SSI)
beneficiaries | 3.20% | 2.50% |
| Tax rate--employee | 2024 | 2025 |
|---|
| FICA tax -- Employee
| 7.65% | 7.65% | | Social Security (OASDI) portion of tax
| 6.20% | 6.20% | | Medicare (HI) portion of tax | 1.45%1 | 1.45%1 |
| Tax rate--self-employed | 2024 | 2025 |
|---|
| Self-Employed | 15.30% | 15.30% | | Social Security (OASDI) portion of tax
| 12.40% | 12.40% | | Medicare (HI) portion of tax | 2.90%1 | 2.90%1 |
1 An additional 0.9% Medicare/hospital
insurance tax (for a total employee contribution of 2.35%) is assessed on wages
exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000
for married individuals filing separate returns). An additional 0.9%
Medicare/hospital insurance tax (for a total Medicare portion of 3.8%) is
assessed on self-employment income exceeding $200,000 ($250,000 for married
couples filing joint returns, $125,000 for married individuals filing separate
returns).
| Maximum taxable earnings | 2024 | 2025 |
|---|
| Social Security (OASDI only) | $168,600 | $176,100 | | Medicare (HI only) | No limit | No Limit |
| Quarter of coverage | 2024 | 2025 |
|---|
| Earnings required | $1,730 | $1,810 |
| Retirement earnings test--exempt amounts--Under full
retirement age--Benefits reduced by $1 for each $2 earned above: | 2024 | 2025 |
|---|
| Yearly figure | $22,320 | $23,400 | | Monthly figure | $1,860 | $1,950 |
| Retirement earnings test--exempt amounts--Year individual
reaches full retirement age--Benefits reduced by $1 for each $3 earned above
(applies only to earnings for months prior to attaining full retirement
age): | 2024 | 2025 |
|---|
| Yearly figure | $59,520 | $62,160 | | Monthly figure | $4,960 | $5,180 |
| Retirement earnings test--exempt amounts--Beginning the month
individual attains full retirement age | 2024 | 2025 |
|---|
| No limit on earnings | No limit on earnings |
| Social Security disability thresholds | 2024 | 2025 |
|---|
| Substantial gainful activity (SGA) for the sighted (monthly
figure) | $1,550 | $1,620 | | Substantial gainful activity for the blind (monthly
figure) | $2,590 | $2,700 | | Trial work period (TWP) (monthly figure) | $1,110 | $1,160 |
| SSI federal payment standard | 2024 | 2025 |
|---|
| Individual (monthly figure) | $943 | $967 | | Couple (monthly figure) | $1,415 | $1,450 |
| SSI resource limits | 2024 | 2025 |
|---|
| Individual | $2,000
| $2,000 | | Couple | $3,000 | $3,000 |
| SSI student exclusion limits | 2024 | 2025 |
|---|
| Monthly limit | $2,290 | $2,350 | | Annual limit | $9,230 | $9,460 |
| Maximum Social Security benefit | 2024 | 2025 |
|---|
| Worker retiring at full retirement age (monthly figure) | $3,822 | $4,018 |
| Formula for Monthly Primary Insurance Amount (PIA) | 2024 | 2025 |
|---|
| (90% of first X of AIME + 32% of the AIME over X and through
Y + 15% of AIME over Y) | X=$1,174
Y=$7,078 | X=$1,226
Y=$7,391 |
Medicare
| Medicare monthly premium amounts--Part A (hospital insurance)
premium | 2024 | 2025 |
|---|
| Individuals with 40 or more quarters of Medicare-covered
employment | $0
| $0
| | Individuals with less than 40 quarters of Medicare-covered
employment who are not otherwise eligible for premium-free hospital
insurance | Up to $505 | Up to $518 |
| Medicare monthly premium amounts--Part B (medical insurance)
monthly premium--for beneficiaries who file an individual income tax return
with income that is: |
|---|
| 2024 | 2025 | 2024 | 2025 | | Less than or equal to $103,000 | Less than or equal to $106,000 | $174.702 | $185.002 | | $103,001 - $129,000 | $106,001 - $133,000 | $244.60 | $259.00 | | $129,001 - $161,000 | $133,001 - $167,000 | $349.40 | $370.00 | | $161,001 - $193,000 | $167,001 - $200,000 | $454.20 | $480.90 | | $193,001 - $499,999 | $200,001 - $499,999 | $559.00 | $591.90 | | $500,000 and above | $500,000 and above | $594.00 | $628.90 |
| Medicare monthly premium amounts--Part B (medical insurance)
monthly premium--for beneficiaries who file a joint income tax return with
income that is: |
|---|
| 2024 | 2025 | 2024 | 2025 | | Less than or equal to $206,000 | Less than or equal to $212,000 | $174.702 | $185.002 | | $206,001 - $258,000 | $212,001 - $266,000 | $244.60 | $259.00 | | $258,001 - $322,000 | $266,001 - $334,000 | $349.40 | $370.00 | | $322,001 - $386,000 | $334,001 - $400,000 | $454.20 | $480.90 | | $386,001 - $749,999 | $400,001 - $749,999 | $559.00 | $591.90 | | $750,000 and above | $750,000 and above | $594.00 | $628.90 |
| Medicare monthly premium amounts--Part B (medical insurance)
monthly premium--for beneficiaries who are married, but file a separate tax
return from their spouse and lived with spouse at some time during the taxable
year with income that is: |
|---|
| 2024 | 2025 | 2024 | 2025 | | Less than or equal to $103,000 | Less than or equal to $106,000 | $174.702 | $185.002 | | $103,001 - $396,999 | $106,001 - $393,999 | $559.00 | $591.90 | | $397,000 and above | $394,000 and above | $594.00 | $628.90 |
2 This is the standard Part B premium amount.
However, some people who get Social Security benefits will pay more or less than this
amount.
| Original Medicare plan deductible and coinsurance
amounts--Part A (hospital insurance) | 2024 | 2025 |
|---|
| Deductible per benefit period | $1,632 | $1,676 | | Coinsurance per day for 61st to 90th day of each benefit
period | $408 | $419 | | Coinsurance per day for 91st to 150th day for each lifetime
reserve day (total of 60 lifetime reserve days--nonrenewable) | $816 | $838 |
| Original Medicare plan deductible and coinsurance
amounts | 2024 | 2025 |
|---|
| Skilled nursing facility coinsurance per day for 21st to
100th day of each benefit period | $204 | $209.50 |
| Original Medicare plan deductible and coinsurance
amounts--Part B (medical insurance) annual deductible | 2024 | 2025 |
|---|
| Individual pays 20 percent of the Medicare-approved amount
for services after deductible is met | $240 | $257 |
Medicaid
| Income threshold | 2024 | 2025 |
|---|
| Monthly income threshold for income-cap states ("300 percent
cap limit") | $2,829 | $2,901 |
| Monthly maintenance needs allowance for at-home spouse | 2024 | 2025 |
|---|
| Minimum 3 | $2,465.00 | $2,555.00 | | Maximum | $3.853.50 | $3,948.00 |
| Community spousal resource allowance | 2024 | 2025 |
|---|
| Minimum | $30,828 | $31,584 | | Maximum | $154,140 | $157,920 |
3 Amounts listed actually effective as of July
of prior year; different amounts apply to Alaska and Hawaii.
|
| | | | | IMPORTANT DISCLOSURES Philippe E Berthoud and William E. Riquier offer Securities and Advisory Services through United Planners Financial Services, Member FINRA/SIPC. United Planners and The Retirement Financial Center are independent companies. Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
This communication is strictly intended for individuals residing in the state(s) of AZ, CA, CO, CT, FL, GA, ME, MD, MA, MT, NV, NH, NJ, NY, VA and WA. No offers may be made or accepted from any resident outside the specific states referenced. | | Prepared by Broadridge Advisor Solutions Copyright 2025. |
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