December Tax Tip

The taxable wage base for Social Security taxes (FICA) stays the same in 2010 as it was in 2009 ($106,800). While wages did go up in 2009 (however modestly), consumer prices went down.

Thus, the taxes on your earned income will stay the same because there will be NO benefit increases for Social Security recipients, the first time since they went into effect in 1975. The benefits are based upon the Consumer Price Index, which went down in value from 2008 (and thus no cost of living increases).