Why Your Social Security Taxes Might Go Up in 2019!

November 9, 2018

As 2019 approaches, you may have heard about upcoming increases to Social Security taxes. If you are like many Angelenos and Americans in general, you are probably wondering whether this will affect you and by how much. Of course, the only way to know the exact answer is to consult an accountant in your local area. If you live in LA, a Los Angeles accounting professional can help you with the specifics of the area. However, here are a few details that will help you better understand the changes taking effect.

What is Different In 2019?

Some taxpayers can expect to see a jump in Social Security taxes of as much as $279. This is the result of the taxes increasing relative to how much in wages and salaries people in the U.S. earn. That number has increased by 3.5 percent, consequently affecting Social Security taxes.

Fortunately for many people, the increase will only affect those earning at least $128,400 per year. Furthermore, the most significant increase will only apply to people earning $132,900 or more. Of course, for people in California, especially cities like LA, these higher annual earnings are more common.

How to Prepare

As with all changes to taxes, how you need to prepare depends on the specifics of your financial situation. Seek out Los Angeles tax preparation services, or an equivalent if you live elsewhere, to help you identify what the effect on your tax obligations will be.

With that information in mind, you can alter your budgeting plans accordingly. If you are in the income bracket affected by this change, you may need to plan on having less after-tax income than in previous years.

Get Professional Help

While individuals can navigate the tax code and plan budgets by themselves, having experienced help can go a long way. Consider working with a professional Los Angeles accounting service to ensure your financial plan is as strong as it can be.

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