The Social Security Administration announced in an October 15, 2015 news release that the maximum amount of earnings subject to Social Security tax in 2016 will remain unchanged at $118,500 that applied for wages paid in 2015.
The retirement earnings test exemption amounts will also remain unchanged for 2016. For a worker under full retirement age the dollar amount of earnings at which benefits will be reduced is $15,720 ($1,310 /month) except for the year in which the worker obtains full retirement age for which the reduction will begin at annual earnings of $41,880 ($3,490/month).
One number that will change is the amount of earnings that will count toward one quarter of coverage. That number will rise from $1,220 to $1,260 in 2016. A worker may earn a maximum of four “quarters” of coverage in a single year.