Are Your 2020 Social Security Taxes Going Up?
Social Security plays a vital role in every American's financial life. For retirees and those who suffer disabling injuries and illnesses during their careers, the benefits that Social Security pays can be crucial in helping them make ends meet. Yet those benefits come at a cost, and working Americans pay taxes out of their paychecks year in and year out to go toward paying current recipients of the program.
Social Security payroll tax rates have stayed constant since 1990, and that will again be the case in 2020. However, the amount of earnings that's subject to the payroll tax will rise significantly, and that will cause the total tax that more than 11 million Americans pay to go up by almost $300 next year.
Anybody who gets a paycheck knows that they lose some of their earnings to various taxes. Money typically gets withheld for federal income tax as well as any state income tax that applies to your earnings. In addition, employers take out money to cover employees' share of Social Security's payroll tax as well as the corresponding withholding for Medicare taxes.
Source Fool.com
