Is there a combined Social Security wage base limit for married/joint returns?
I know that the wage base limit for 2020 is 7,700, but that is for one person. Is there a different limit for married couples filing jointly (e.g. double the 7,700 = 5,400, or something else), or is that still computed on an individual basis?
Essentially what I'm asking is if I make 0,000 and my wife makes ,000, would we pay social security taxes on 0,000 (because our combined income is less than 5,400) 7,700 (because my taxable income is capped at 7,700 and all of hers is taxable), or something else (because there's a different wage base limit for the two of us combined)?
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Meta: not really an answer because not asked, but too much for a comment
First, I concur with mhoran_prep that Social Security tax is determined separately for each individual even when filing joint. Also for regular Medicare tax, which does not stop at the 'wage base'.
But for the Additional Medicare Tax recently added by PPACA, joint filing does matter. If Jer's case were actually self=0k wife=k, then the employer would be required to withhold 0.9% on the k over 0k for Jer, even though on the joint return Jer&wife will be within the 0k threshold and actually owe no tax, so all else equal the withholding will become a refundable overpayment.
See www.irs.gov/taxtopics/tc560
The wage base limit is an individual limit.
If you hit the limit, your employer will stop withholding 6.2% for Social security from your check; but if your spouse hasn't hit their limit their employer will still withhold 6.2% from their paycheck until they hit their limit.
If this wasn't the case, think how hard it would be for the two employers to know the combined family income to know when a combined limit was reached. The employers would have to know what the family year-to-date number was, and update the other employer after each paycheck.
If a person has more than one job, or they switch companies partway though the year, they can exceed the limit without their employer knowing. In that case the taxpayer gets a refund when they file their taxes in the spring.
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