The Social Security Administration and Department of Health & Human Services have announced the new amounts for 2009.
- SOCIAL SECURITY CHANGES
Social Security benefits increase 5.8% for 2009.The amount of earnings subject to Social Security taxes increases from $102,000 for 2008 to $106,800 for 2009.
The amount of earnings required in order to receive a quarter of coverage increases from $1,050 for 2008 for $1,090 for 2009.
Earnings limitations for taxpayers who have not reached full retirement age (before having to repay Social Security benefits) increases from $13,560 ($1,130/month) for 2008 to $14,160 ($1,180/month) for 2009.
Earnings limitations for taxpayers who reach full retirement age in the current year (before having to repay Social Security benefits) increases from $36,120 ($3,010/month) for 2008 to $37,680 ($3,140/month) for 2009. (‘Full retirement age’ is 66 years for those born in 1943-1954.)
The maximum monthly Social Security benefits increase from $2,185 for 2008 to $2,323 for 2009.
The amount of the SSI Federal Payment Standard increases for individuals from $637/month for 2008 to $674/month for 2009. For a married couple this increases from $956/month for 2008 to $1,011/month. The SSI Resource limits of $2,000 for individuals and $3,000 for couples do not change. The SSI Student Exclusion Limits increase from $1,550/month in 2008 to $1,640/month in 2009 with the annual limit increasing from $6,240 to $6,600.
The Substantial Gainful Activity earnings increases from $940/month in 2008 to $980/month for 2009 for non-blind disabled recipients while the blind disabled recipients amounts increase from $1,570/month for 2008 to $1,640/month for 2009. The Trial Work Period earnings increase from $670/month in 2008 to $700/month for 2009.
- MEDICARE CHANGES
Medicare Changes for 2009
The U.S. Department of Health & Human Services has announced the new amounts as well as changes in Medicare for 2009.
The base Medicare Part B monthly premiums STAYS THE SAME from $96.40/month ($1,156.80/year) in 2008 to $96.40/month ($1,156.80/year) in 2009. (Yes, we did say STAYS THE SAME).
For 2008 the premiums vary depending on the taxpayers’ income as shown on their 2006 income tax returns and their filing status. For 2009 the premiums are tied into the 2007 income tax returns.
The monthly premiums amounts for 2009 based on income and filing status are:
SINGLE:
Premiums – – – – Income of:$96.40 – – – $85,000 or less
$134.90 – – – $85,001-$107,000
$192.70 – – – $107,001-$160,000
$250.50 – – – $160,001-$213,000$308.30 – – – Above $213,000
MFJ:
Premiums – – – – Income of:
$96.40 – – – $170,000 or less$134.90 – – – $170,001-$214,000
$192.70 – – – $214,001-$320,000
$250.50 – – – $320,001-$426,000
$308.30 – – – Above $426,000MFS:
Premiums – – – – Income of:
$96.40 – – – $85,000 or less
$154.10 – – – $85,001-$128,000$211.90 – – – Above $128,000
The Part B Medicare deductible for 2008 is $135 and stays the same at $135 for 2009.
This Medicare information can be found at www.cms.hhs.gov. The SS information can be found at www.ssa.gov.
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This text has been shared with you courtesy of: David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, 920-496-1065 (fax 920-496-9111) davidmellem@yahoo.com, marymellemea@yahoo.com, davidmellemea@yahoo.com, and marymellem@yahoo.com
©2008 Ashwaubenon Tax Professionals. No reproduction of this article is permitted without the express consent of Ashwaubenon Tax Professionals, 2140 Holmgren Way, Suite 1040, Green Bay, WI 54304.
David L. Mellem, EA
Ashwaubenon Tax Professionals
2140 Holmgren Way
Green Bay, WI 54304
920-496-1065 – – fax 920-496-9111
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