The Social Security Administration announced in an October 19, 2016 news release that the maximum amount of earnings subject to Social Security tax in 2017 will rise to $127,200 from the maximum $118,500 that applied for 2016.
The retirement earnings test exemption amounts will also rise in 2017. For a worker under full retirement age the dollar amount of earnings at which benefits will be reduced is $16,920 ($1,410/month) in 2017 except for the year in which the worker obtains full retirement age for which the reduction will begin at annual earnings of $44,880 ($3,740/month). The 2016 amounts were $15,720 ($1,310/month) and $41,880 ($3,490/month).
The amount of earnings to obtain one quarter of coverage will rise from 2016’s $1,260 to $1,300 in 2017. A worker may earn a maximum of four quarters of coverage in a single year with earnings of $5,200 in 2017.