SOCIAL SECURITY AND MEDICARE CHANGES FOR 2005
The Social Security Administration and Department of Health & Human Services have announced the new amounts for 2005.
-
Social Security benefits increase 2.7% for 2005.
-
The amount of earnings subject to Social Security
taxes increases from $87,900 in 2004 to $90,000
for 2005.
-
The amount of earnings required in order to receive
a quarter of coverage increases from $900 in 2004
to $920 for 2005.
-
Earnings limitations for taxpayers who have not
reached full retirement age (before having to
repay Social Security benefits) increases from
$11,640 ($970/month) in 2004 to $12,000
($1,000/month) for 2005.
-
Earnings limitations for taxpayers who reach full
retirement age in the current year (before having
to repay Social Security benefits) increases from
$31,080 ($2,590/month) in 2004 to $31,800
($2,650/month) for 2005.
- The maximum Social Security benefits increase
from $1,825 in 2004 to $1,825 for 2005.
- The amount of the SSI Federal Payment Standard
increases for individuals from $564/month in 2004
to $579/month for 2005. For a married couple
this increases from $846 in 2004 to $869 for 2005. The SSI Resource
limits of $2,000 for individuals and $3,000 for couples do not change.
-
The Medicare Part B premiums increase 17.4% from
$66.60/month in 2004 to $78.20/month for 2005.
Or from $799.20 to $938.40 per year
| COMPARISON CHART |
2004 |
2005 |
| Earnings subject to Social Security taxes |
$87,900 |
$90,000 |
| Minimum earnings per quarter to get SS coverage |
$ 900 |
$ 920 |
| Earnings limits for taxpayers under full retirement age |
$11,640 |
$12,000 |
or |
$970/month |
$1,000/month |
| Earnings limits for taxpayers who reach full retirement age in the
current year |
$31,080 |
$31,800 |
or |
$2,590/month |
$2,650/month |
| Maximum SS benefits |
$1,825 |
$1,825 |
| The SSI Federal Payment Standard |
$564/month |
$579/month |
| For married couples |
$846 |
$869 |
| The Medicare Part B premiums |
$799.20 |
$938.40 |
or |
$66.60/month |
$78.20/month |
|
These New Releases can be found at
www.socialsecurity.gov (for Social Security news)
and www.hhs.gov (for
Medicare news).
This text has been shared with you courtesy of: David
& Mary Mellem, EAs & Ashwaubenon Tax Professionals,
920-496-1065 (fax 920-496-9111) , davidmellemea@yahoo.com & marymellemea@yahoo.com
Published
TaxMama.com 11.05.04
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