Mark Stevens, CFP®
mark@wealthcarenetwork.org
 
 




2018 Key Numbers

 

Government Benefits

Social Security

Social Security Cost-of-living adjustment (COLA)20172018
For Social Security and Supplemental Security Income (SSI) beneficiaries0.30%2.00%
Tax rate--employee20172018
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-employed20172018
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 earnings20172018
Social Security (OASDI only)$127,200 $128,400
Medicare (HI only)No limitNo limit
Quarter of coverage20172018
Earnings required$1,300 $1,320
Retirement earnings test--exempt amounts--Under full retirement age--Benefits reduced by $1 for each $2 earned above:20172018
Yearly figure$16,920 $17,040
Monthly figure$1,410 $1,420
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):20172018
Yearly figure$44,880 $45,360
Monthly figure$3,740 $3,780
Retirement earnings test--exempt amounts--Beginning the month individual attains full retirement age20172018
No limit on earningsNo limit on earnings
Social Security disability thresholds20172018
Substantial gainful activity (SGA) for the sighted (monthly figure)$1,170 $1,180
Substantial gainful activity for the blind (monthly figure)$1,950 $1,970
Trial work period (TWP) (monthly figure)$840 $850
SSI federal payment standard20172018
Individual (monthly figure)$735 $750
Couple (monthly figure)$1,103 $1,125
SSI resource limits20172018
Individual$2,000$2,000
Couple$3,000$3,000
SSI student exclusion limits20172018
Monthly limit$1,790 $1,820
Annual limit$7,200 $7,350
Maximum Social Security benefit20172018
Worker retiring at full retirement age (monthly figure)$2,687 $2,788
Formula for Monthly Primary Insurance Amount (PIA)20172018
(90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y)X=$885 Y=$5,336X=$895 Y=$5,397

Medicare

Medicare monthly premium amounts--Part A (hospital insurance) premium20172018
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 $413Up to $422
Medicare monthly premium amounts--Part B (medical insurance) monthly premium--for beneficiaries who file an individual income tax return with income that is:20172018
Less than or equal to $85,000 $109 / $1342$130 / $1342
$85,001 - $107,000$187.50$187.50
$107,001 - $160,000 [2017] $107,001 - $133,500 [2018]$267.90$267.90
$160,001 - $214,000 [2017] $133,501 - $160,000 [2018]$348.30$348.30
Greater than $214,000 [2017] Greater than $160,000 [2018]$428.60$428.60
Medicare monthly premium amounts--Part B (medical insurance) monthly premium--for beneficiaries who file a joint income tax return with income that is:20172018
Less than or equal to $170,000$109 / $1342$130 / $1342
$170,001 - $214,000$187.50$187.50
$214,001 - $320,000 [2017] $214,001 - $267,000 [2018]$267.90$267.90
$320,001 - $428,000 [2017] $267,001 - $320,000 [2018]$348.30$348.30
Greater than $428,000 [2017] Greater than $320,000 [2018]$428.60$428.60
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:20172018
Less than or equal to $85,000$109 / $1342$130 / $1342
$85,001 - $129,000 [2017] N/A [2018]$348.30N/A
Greater than $129,000 [2017] Greater than $85,000 [2018]$428.60$428.60

2 The standard Part B premium amount is $134 (or higher depending on your income) ($134 in 2018 as well). However, some people who get Social Security benefits will pay less than this amount ($109 on average in 2017; $130 on average in 2018).

Original Medicare plan deductible and coinsurance amounts--Part A (hospital insurance)20172018
Deductible per benefit period$1,316$1,340
Coinsurance per day for 61st to 90th day of each benefit period$329$335
Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days--nonrenewable)$658$670
Original Medicare plan deductible and coinsurance amounts20172018
Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period$164.50$168
Original Medicare plan deductible and coinsurance amounts--Part B (medical insurance) annual deductible20172018
Individual pays 20 percent of the Medicare-approved amount for services after deductible is met$183$183

Medicaid

Income threshold20172018
Monthly income threshold for income-cap states ("300 percent cap limit")$2,205 $2,250
Monthly maintenance needs allowance for at-home spouse20172018
Minimum 3$2,002.50 $2,030.00
Maximum$3,022.50$3,090.00
Spousal resource allowance20172018
Minimum$24,180$24,720
Maximum$120,900$123,600

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




This communication is strictly intended for individuals residing in the state(s) of GA. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018.