By the year 2023, what will be the maximum income taxable under Social Security?

Employees are subject to a limit on how much Social Security taxes their earnings.

Maximum taxable earnings shift annually in line with changes in the national average wage index.

It is $147,000 for 2022, but several provisions proposed by the 

Social Security Administration (SSA) could alter that amount in 2023.

In 2022, both employees and employers will be subject to OASDI tax rates of 6.2%. On the other hand, 

Self-employed workers will be subject to OASDI tax rates of 12.4%. Workers earning $147,000 

Or more will contribute $9,114.00 to OASDI, and employers will do the same. 

Self-employed workers would contribute the full amount of $18,228.

As of 2023, the Social Security Administration (SSA) can either modify the current OASDI payroll 

Tax rate of 12.4% or the maximum amount that can be taxable. A recent congressional proposal 

Aims to add a payroll tax to wages over $400,000 to address Social Security's solvency issues. 

Therefore, earnings up to $147,000 would still be taxed, but not until wages exceeded $400,000.

The other proposed provision seeks to apply the OASDI payroll tax at 12.4% to earnings over $250,000

Or $300,000 in 2023, which would tax all earnings once the taxable maximum exceeds $250,000 or $300,000.

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