Dushyant Pandit
dpandit@dorchesteradvisors.com
 
 




2020 Key Numbers

 

Government Benefits

Social Security

Social Security Cost-of-living adjustment (COLA)20192020
For Social Security and Supplemental Security Income (SSI) beneficiaries2.80%1.60%
Tax rate--employee20192020
FICA tax -- Employee 7.65%7.65%
Social Security (OASDI) portion of tax 6.20%6.20%
Medicare (HI) portion of tax1.45%11.45%1
Tax rate--self-employed20192020
Self-Employed15.30%15.30%
Social Security (OASDI) portion of tax 12.40%12.40%
Medicare (HI) portion of tax2.90%12.90%1

1 An additional 0.9% Medicare/hospital insurance tax (for a total employee contribution of 2.35%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). An additional 0.9% Medicare/hospital insurance tax (for a total Medicare portion of 3.8%) is assessed on self-employment income exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns).

Maximum taxable earnings20192020
Social Security (OASDI only)$132,900 $137,700
Medicare (HI only)No limitNo limit
Quarter of coverage20192020
Earnings required$1,360$1,410
Retirement earnings test--exempt amounts--Under full retirement age--Benefits reduced by $1 for each $2 earned above:20192020
Yearly figure$17,640 $18,240
Monthly figure$1,470$1,520
Retirement earnings test--exempt amounts--Year individual reaches full retirement age--Benefits reduced by $1 for each $3 earned above (applies only to earnings for months prior to attaining full retirement age):20192020
Yearly figure$46,920 $48,600
Monthly figure$3,910$4,050
Retirement earnings test--exempt amounts--Beginning the month individual attains full retirement age20192020
No limit on earningsNo limit on earnings
Social Security disability thresholds20192020
Substantial gainful activity (SGA) for the sighted (monthly figure)$1,220 $1,260
Substantial gainful activity for the blind (monthly figure)$2,040$2,110
Trial work period (TWP) (monthly figure)$880 $910
SSI federal payment standard20192020
Individual (monthly figure)$771 $783
Couple (monthly figure)$1,157$1,175
SSI resource limits20192020
Individual$2,000$2,000
Couple$3,000$3,000
SSI student exclusion limits20192020
Monthly limit$1,870 $1,900
Annual limit$7,550$7,670
Maximum Social Security benefit20192020
Worker retiring at full retirement age (monthly figure)$2,861 $3,011
Formula for Monthly Primary Insurance Amount (PIA)20192020
(90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y)X=$926 Y=$5,583X=$960 Y=$5,785

Medicare

Medicare monthly premium amounts--Part A (hospital insurance) premium20192020
Individuals with 40 or more quarters of Medicare-covered employment$0$0
Individuals with less than 40 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insuranceUp to $437Up to $458
Medicare monthly premium amounts--Part B (medical insurance) monthly premium--for beneficiaries who file an individual income tax return with income that is:20192020
Less than or equal to $87,000 $135.502$144.602
$87,001 - $109,000$189.60$202.40
$109,001 - $136,000 $270.90$289.20
$136,001 - $163,000 $352.20$376.00
$163,001 - $499,999$433.40$462.70
$500,000 and above$460.50$491.60
Medicare monthly premium amounts--Part B (medical insurance) monthly premium--for beneficiaries who file a joint income tax return with income that is:20192020
Less than or equal to $174,000 $135.502$144.602
$174,001 - $218,000$189.60 $202.40
$218,001 - $272,000$270.90$289.20
$272,001 - $326,000$352.20$376.00
$326,001 - $749,999 $433.40$462.70
$750,000 and above $460.50 $491.60
Medicare monthly premium amounts--Part B (medical insurance) monthly premium--for beneficiaries who are married, but file a separate tax return from their spouse and lived with spouse at some time during the taxable year with income that is:20192020
Less than or equal to $87,000 $135.502$144.602
$87,001 - $413,000 $433.40$462.70
$413,000 and above$460.50$491.60

2 This is the standard Part B premium amount. However, some people who get Social Security benefits will pay less than this amount.

Original Medicare plan deductible and coinsurance amounts--Part A (hospital insurance)20192020
Deductible per benefit period$1,364 $1,408
Coinsurance per day for 61st to 90th day of each benefit period$341 $352
Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days--nonrenewable)$682$704
Original Medicare plan deductible and coinsurance amounts20192020
Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period$170.50$176
Original Medicare plan deductible and coinsurance amounts--Part B (medical insurance) annual deductible20192020
Individual pays 20 percent of the Medicare-approved amount for services after deductible is met$185$198

Medicaid

Income threshold20192020
Monthly income threshold for income-cap states ("300 percent cap limit")$2,313$2,349
Monthly maintenance needs allowance for at-home spouse20192020
Minimum 3$2,057.50$2,113.75
Maximum$3,160.50TBD
Community spousal resource allowance20192020
Minimum$25,284 TBD
Maximum$126,420TBD

3 Amounts listed actually effective as of July of prior year; different amounts apply to Alaska and Hawaii.



Dorchester Advisors is a Registered Investment Advisor in NJ and NY. This communication is strictly intended for individuals residing in the state(s) of NJ and NY. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019.