Changes To Social Security Benefits & Medicare Part B Premiums

Social security benefits rise 2% in 2018. There is no earnings cap for beneficiaries over 66; people who turn 66 in 2018 do not lose benefits if they make $45,360 before reaching 66; beneficiaries between 62 and 66 by the end of 2018 can make $17,040 before losing any benefits. A minimum of $1,320 earnings is needed to earn 1 quarter of social security coverage, so $5,280 earnings at anytime during 2018 will cover the full year. If you paid your nanny or housekeeper $2,100 or more in 2018, you should withhold and pay Social Security and Medicare on all of her wages. 

Medicare Part B premium remains $134 per month. But higher rates apply to seniors whose 2016 (2 years back) modified AGI exceeded $170,000 for MFJs and $85,000 for singles. Modified AGI is AGI plus any tax–exempt interest.