This Is Exactly How Much You Can Earn in 2026 Before Your Social Security Payroll Tax Increases

Social Security benefits are funded by taxes collected from workers. As you work and earn income, you pay taxes into the system. The income you earn and the taxes that you pay earn you work credits, and if you earn at least 40 work credits, then you qualify for benefits.The earnings you are taxed on are also recorded in your earnings history, and you end up with benefits equal to a percentage of your average income in your 35 highest-earning years.Most workers are subject to tax on all of their income, and their taxes don't change from year to year unless their income does. Some high earners, however, operate under different rules. They do not pay Social Security tax on every dollar of their income, and in some years, their Social Security tax bill goes up.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool