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6 Social Security Changes for 2021

6 Social Security Changes for 2021

Changes in Social Security taxes and benefits that took effect Jan. 1, 2021

Every October, the Social Security Administration (SSA) announces its annual changes to the Social Security program for the coming year. Here are the Social Security changes that were announced in Oct. 2020 to take effect on Jan. 1, 2021, according to the SSA’s annual fact sheet.

KEY TAKEAWAYS

  • Social Security recipients got a 1.3% raise for 2021, compared with the 1.6% hike beneficiaries received in 2020.
  • Maximum earnings subject to the Social Security tax also increased—from $137,700 a year to $142,800.
  • Other changes for 2021 included an increase in how much money working Social Security recipients can earn before their benefits are reduced and a slight rise in disability benefits.
  • Social Security tax rates remain the same for 2021—6.2% on employees and 12.4% on the self-employed.
  • It now takes $1,470 to earn a single Social Security credit, up $60 from 2020.
Max Benavidez
maxbenavidez@gmail.com
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