What is the maximum cumulative amount for Social Security taxable earnings?

What is the maximum cumulative amount for Social Security taxable earnings?

• A. $110,000
• B. $112,000
• C. $120,000
• D. $110,100

Answer: (D)

Social Security tax applies only to earnings up to a cap set each year. That cap, known as the wage-base limit, is the maximum cumulative amount of earnings that can be taxed for Social Security in the calendar year. For the year in question, the wage-base limit is 110,100 dollars, so only the first 110,100 of earnings are subject to Social Security tax; any earnings beyond that are not taxed for Social Security (though Medicare tax continues). The other numbers aren’t the official wage-base limit for that year, which is why they aren’t correct.

Social Security tax applies only to earnings up to a cap set each year. That cap, known as the wage-base limit, is the maximum cumulative amount of earnings that can be taxed for Social Security in the calendar year. For the year in question, the wage-base limit is 110,100 dollars, so only the first 110,100 of earnings are subject to Social Security tax; any earnings beyond that are not taxed for Social Security (though Medicare tax continues). The other numbers aren’t the official wage-base limit for that year, which is why they aren’t correct.