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YOUR SOCIAL SECURITY Rock Island, Illinois Office

By Cristina Vital
Social Security Manager
Rock Island Social Security Office

2016 SOCIAL SECURITY CHANGES

•  Cost-of-Living Adjustment (COLA):
Monthly Social Security and Supplemental Security Income (SSI) benefits will not automatically increase in 2016, as there was no increase in the Consumer Price Index (CPI-W) from the third quarter of 2014 to the third quarter of 2015.  Other important 2016 Social Security information is as follows:

[table]Tax Rate:,2015,2016
Employee,7.65%,7.65%
Self-Employed,15.30%,15.30%[/table]

NOTE:  The 7.65% tax rate is the combined rate for Social Security and Medicare.  The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below).  The Medicare portion (HI) is 1.45% on all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.

[table terminator=”|”]Maximum Taxable Earnings:,2015,2016|
Social Security (OASDI only) Medicare (HI only) No Limit,$118\,500,$118\,500*|
Quarter of Coverage:,$1\,220,$1\,260|
Retirement Earnings
Test Exempt Amounts:
Under full retirement age,
$15\,720/yr.
($1\,310/mo.)
,$15\,720/yr.*
($1\,310/mo.)|[/table]

NOTE:  One dollar in benefits will be withheld for every $2 in earnings above the limit.

[table ]The year an individual reaches full retirement age,2015,2016
,$41\,880/yr.,$41\,880/yr.*
,($3\,490/mo.),($3\,490/mo.)[/table]

NOTE:  Applies only to earnings for months prior to attaining full retirement age.  One dollar in benefits will be withheld for every $3 in earnings above the limit.
There is no limit on earnings beginning the month an individual attains full retirement age.

[table terminator=”|”]Social Security Disability Thresholds:
Substantial Gainful Activity (SGA),2015,2016|
Non-Blind,$1\,090/mo.,$1\,130/mo.|
Blind,$1\,820/mo.,$1\,820/mo.*|
Trial Work Period (TWP),$780/mo.,$810/mo.[/table] [table terminator=”|”]Maximum Social Security Benefit:,2015,2016|
Worker Retiring at
Full Retirement Age:,$2\,663/mo.,$2\,639/mo.**[/table] [table terminator=”|”]SSI Federal Payment Standard:,2015,2016|
Individual,$ 733/mo.,$733/mo.*|
Couple,$1\,100/mo.,$1\,100/mo.*[/table] [table terminator=”|”]SSI Resources Limits:
Individual,$2\,000,$2\,000|
Couple,$3\,000,$3\,000[/table] [table terminator=”|”]SSI Student Exclusion:,2015,2016|
Monthly limit,$1\,780,$1\,780*|
Annual limit,$7\,180,$7\,180*[/table] [table terminator=”|”]Estimated Average Monthly Social Security Benefits:,Payable in January 2016|
All Retired Workers,$1\,341|
Aged Couple\, Both Receiving Benefits,$2\,212|
Widowed Mother and Two Children,$2\,680|
Aged Widow(er) Alone,$1\,28|
Disabled Worker\, Spouse and
One or More Children,$1\,983|
All Disabled Workers,$1\,166[/table]

* Because there is no COLA, by law these amounts remain unchanged in 2016.
** A decrease in full maximum benefits occurs when there is no COLA, but there is an increase in the national average wage index.