Social Security Tips – November 2021

Here are some things to know for 2022.

  1. Clients that are working and collecting a Social Security benefit (other than disability) have earnings limits until the month they turn full retirement age.
  • If under full retirement age for all of 2022, Social Security deducts $1 from their benefit payments for every $2 that they earn above $19,560.
  • If turning full retirement age in 2022, Social Security deducts $1 in benefits for every $3 earned above $51,960 BUT – Social Security only counts earnings before the month of attainment of full retirement age.
  • The maximum taxable earnings amount in 2022 is $147,000. That’s the 6.2% FICA tax. There is no limit on the Medicare tax of 1.45%.
  • Social Security beneficiaries will receive their 2022 COLA notice in early December showing their new benefit amount. If your clients have a my Social Security account, they will be able to view their COLA notice sooner using the Message Center. They can access this information in early December prior to the mailed notice. They can also opt out of any other notices that are available online by updating their Preferences in the Message Center. They can also receive a text or email alert when there is a new message waiting for them. If they don’t have an account yet, they must create one by November 17, 2021, to receive the 2022 COLA notice online. 
  • If your client files a federal tax return as an “individual” and their combined income is between $25,000-$34,000, they may have to pay income tax on 50% of their benefits and, if more than $34,000, up to 85% of their benefits may be taxable.
  • If your client files a joint tax return and their combined income is between $32,000 and $44,000, they may have to pay income tax on up to 50% of their benefits and, if more than $44,000, up to 85% of their benefits may be taxable.

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Advanced Asset Management
4555 Wilson Ave SW, Suite 2
Grandville, MI 49418

Phone: (616) 531-5220
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