Changes To Social Security Benefits & Medicare Part B Premiums

Social security benefits rise 1.6% in 2020. There is no earnings cap for beneficiaries over 66; people who turn 66 in 2020 do not lose benefits if they make $48,600 before reaching 66; beneficiaries between 62 and 66 by the end of 2020 can make $18,240 before losing any benefits. A minimum of $1,410 earnings is needed to earn 1 quarter of social security coverage, so $5,640 earnings at any time during 2020 will cover the full year. If you paid your nanny or housekeeper $2,200 or more in 2020, you should withhold and pay Social Security and Medicare on all of her wages. 

Medicare Part B premium increases to $144.60 in 2020. But higher rates apply to seniors whose 2018 (2 years back) modified AGI exceeded $174,000 for MFJs and $87,000 for singles. Modified AGI is AGI plus any tax–exempt interest.​