I wasn’t talking about the tax on the benefits, I’m talking about the limit to the amount you earn that is taxed FOR social security. It rises each year, I think by the same rate as the benefits.
But I’m not absolutely sure of that. Does anybody know for sure how they set the Social Security tax cutoff each year?
The earnings cap is based on the average wage index (AWI). The AWI is derived from data on federal tax returns: wages subject to Federal income taxes and contributions to deferred compensation plans. The earnings cap increases according to the AWI.