| | Government Benefits
Social Security
| Social Security Cost-of-living adjustment (COLA) | 2020 | 2021 |
|---|
| For Social Security and Supplemental Security Income (SSI)
beneficiaries | 1.60% | 1.30%
|
| Tax rate--employee | 2020 | 2021 |
|---|
| 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 | 2020 | 2021 |
|---|
| 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 | 2020 | 2021 |
|---|
| Social Security (OASDI only) | $137,700 | $142,800
| | Medicare (HI only) | No limit | No limit |
| Quarter of coverage | 2020 | 2021 |
|---|
| Earnings required | $1,410 | $1,470
|
| Retirement earnings test--exempt amounts--Under full
retirement age--Benefits reduced by $1 for each $2 earned above: | 2020 | 2021 |
|---|
| Yearly figure | $18,240
| $18,960
| | Monthly figure | $1,520 | $1,580 |
| 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): | 2020 | 2021 |
|---|
| Yearly figure | $48,600
| $50,520
| | Monthly figure | $4,050 | $4,210 |
| Retirement earnings test--exempt amounts--Beginning the month
individual attains full retirement age | 2020 | 2021 |
|---|
| No limit on earnings | No limit on earnings |
| Social Security disability thresholds | 2020 | 2021 |
|---|
| Substantial gainful activity (SGA) for the sighted (monthly
figure) | $1,260
| $1,310
| | Substantial gainful activity for the blind (monthly
figure) | $2,110 | $2,190 | | Trial work period (TWP) (monthly figure) | $910
| $940
|
| SSI federal payment standard | 2020 | 2021 |
|---|
| Individual (monthly figure) | $783
| $794
| | Couple (monthly figure) | $1,175 | $1,191 |
| SSI resource limits | 2020 | 2021 |
|---|
| Individual | $2,000
| $2,000 | | Couple | $3,000 | $3,000 |
| SSI student exclusion limits | 2020 | 2021 |
|---|
| Monthly limit | $1,900
| $1,930 | | Annual limit | $7,670 |
$7,770 |
| Maximum Social Security benefit | 2020 | 2021 |
|---|
| Worker retiring at full retirement age (monthly figure) | $3,011
|
$3,148 |
| Formula for Monthly Primary Insurance Amount (PIA) | 2020 | 2021 |
|---|
| (90% of first X of AIME + 32% of the AIME over X and through
Y + 15% of AIME over Y) | X=$960 Y=$5,785 | X=$996
Y=$6,002 |
Medicare
| Medicare monthly premium amounts--Part A (hospital insurance)
premium | 2020 | 2021 |
|---|
| 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 $458 | Up to $471 |
| Medicare monthly premium amounts--Part B (medical insurance)
monthly premium--for beneficiaries who file an individual income tax return
with income that is: | 2020 | 2021 |
|---|
| Less than or equal to $88,000 | $144.602 | $148.502 | | $88,001 - $111,000 | $202.40 | $207.90 | | $111,001 - $138,000 | $289.20 | $297.00 | | $138,001 - $165,000 | $376.00 | $386.10
| | $165,001 - $499,999 | $462.70 |
$475.20 | | $500,000 and above | $491.60 | $504.90 |
| Medicare monthly premium amounts--Part B (medical insurance)
monthly premium--for beneficiaries who file a joint income tax return with
income that is: | 2020 | 2021 |
|---|
| Less than or equal to $176,000 | $144.602 | $148.502
| | $176,001 - $222,000 | $202.40
| $207.90
| | $222,001 - $276,000 | $289.20 | $297.00 | | $276,001 - $330,000 | $376.00 |
$386.10 | | $330,001 - $749,999 | $462.70 |
$475.20 | | $750,000 and above | $491.60 | $504.90
|
| 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: | 2020 | 2021 |
|---|
| Less than or equal to $88,000 | $144.602 | $148.502 | | $88,001 - $412,000 | $462.70 | $475.20 | | $412,000 and above | $491.60 | $504.90
|
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) | 2020 | 2021 |
|---|
| Deductible per benefit period | $1,408 | $1,484
| | Coinsurance per day for 61st to 90th day of each benefit
period | $352 | $371 | | Coinsurance per day for 91st to 150th day for each lifetime
reserve day (total of 60 lifetime reserve days--nonrenewable) | $704 | $742 |
| Original Medicare plan deductible and coinsurance
amounts | 2020 | 2021 |
|---|
| Skilled nursing facility coinsurance per day for 21st to
100th day of each benefit period | $176 | $185.50 |
| Original Medicare plan deductible and coinsurance
amounts--Part B (medical insurance) annual deductible | 2020 | 2021 |
|---|
| Individual pays 20 percent of the Medicare-approved amount
for services after deductible is met | $198 | $203 |
Medicaid
| Income threshold | 2020 | 2021 |
|---|
| Monthly income threshold for income-cap states ("300 percent
cap limit") | $2,349 | $2,382
|
| Monthly maintenance needs allowance for at-home spouse | 2020 | 2021 |
|---|
| Minimum 3 | $2,113.75
| $2,155.00 | | Maximum | $3,216 | $3,259.50 |
| Community spousal resource allowance | 2020 | 2021 |
|---|
| Minimum | $25,728 | $26,076.00 | | Maximum | $128,640 | $130,380.00 |
3 Amounts listed actually effective as of July
of prior year; different amounts apply to Alaska and Hawaii.
|