That’s not because Congress is taking action to raise Social Security taxes on the rich — although it’s possible legislation could pass that would make that happen. Instead, higher earners will see their taxes go up because the wage base limit is increasing.
The wage base limit is the maximum income subject to Social Security tax. Any earnings above that limit aren’t taxed (and don’t count in the average wage formula that determines how much money seniors receive). In 2021, the wage base limit was $142,800, but it’s rising to $147,000 in 2022. Those who earn more than $142,800 will end up paying Social Security taxes on up to $4,200 more income.
4. Seniors can earn more before forfeiting benefits
Finally, retirees who are working while getting benefits may be able to earn more before they forfeit some of their Social Security income. Although this forfeiture is temporary and retirees eventually get back the extra money, the loss of Social Security checks can be painful for those who were counting on multiple income sources.
See, anyone who hasn’t yet reached full retirement age could risk losing some of their Social Security checks if they earn too much.