What Is the 2018 Maximum Social Security Tax?
Close to 62 million Americans received an estimated $955 billion in Social Security benefits in 2017. Money for Social Security retirement benefits comes from the Social Security trust fund, which is funded by tax dollars and invested in special-issue securities issued by the U.S. Treasury.
How does the money get into the trust fund? From taxes levied to fund Social Security.
Whether you earn income from an employer or from freelance work, you must pay Social Security taxes. However, these taxes are not necessarily assessed on every dollar of income earned. There's a wage cap on Social Security benefits, which means there's a maximum amount of taxes you'll have to pay into Social Security each year. This amount is adjusted upward periodically to keep pace with the increase in average wages.
Source: Fool.com
