Social Security Increases

The wage base for old age social security tax increase from $102,000 in 2008 to $106,800 in 2009. The amount of earnings needed to earn a quarter of coverage will increase from $1,050 to $1,090. Earnings for early retirees will be exempt if under $1,180 per month (up from $1,030 per month in 2008).
Benefits will rise the most in over a quarter century... 5.8%
Social security withholding from wages are reported by your employer on form W2. For self-employed taxpayers, report your earnings and compute your tax on Form 1040 - Schedule SE. http://fasttaxreturnsonline.com/schedulec.html
For many taxpayers, their social security tax will be more than their income tax for the year. Warren Buffet has been (famously) quoted as saying that his secretary is in a higher tax bracket than he is because of the security tax on wages & low rate rates on dividends and capital gains. http://fasttaxreturnsonline.com/scheduled.html

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