Social Security Tax drops from 6.2 to 4.2 Percent

For 2011, the Social Security tax rate is 4.2 percent for employees, 6.2 percent for employers, and 10.4 percent for self-employed people. These rates apply to earnings up to the maximum taxable amount ($106,800 in 2011).

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reduced 2011 Social Security tax rates for employees and self-employed people by two percentage points.

Learn more about the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 at the White House website.

www.whitehouse.gov/taxcut

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Social Security Invites the Public to Comment on its Regulations

Michael J. Astrue, Commissioner of Social Security, today announced a new way for members of the public to participate in open and transparent government. In response to President Obama’s executive order on improving regulations and regulatory review, Social Security is inviting people to provide direct feedback on its rules and regulations. Ideas and comments may be emailed to RegsReview@ssa.gov.

“Social Security values the public’s input and wants to provide a meaningful opportunity for people to participate in the regulatory process,” Commissioner Astrue said. “I invite the public to share their thoughts and I am excited to hear their ideas.”

Social Security’s program rules are available online and may be accessed a www.socialsecurity.gov/regulations. There, you will find complete information about Social Security’s laws, regulations, rulings, and employee operating instructions.

For information about what Social Security is doing to improve its regulations and how the agency will implement the President’s executive order, go to the Open Government website: www.socialsecurity.gov/open/regsreview/.

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IRWE for Transportation Provided By Parent

Question:

"I receive SSDI and SSI benefits and my medical impairment prevents me from driving a motor vehicle. My mother drives me to and from my place of employment, which is about 10 miles from my home. Can I deduct any of the transportation costs from my earnings to lessen the impact that my earnings have on my SSDI and SSI benefits?"

Answer:

Maybe. An impairment-related work expense (IRWE) can be useful to beneficiaries of Social Security Disability Insurance (SSDI) and to recipients of Supplemental Security Income (SSI). If you receive SSDI benefits, the Social Security Administration will deduct the IRWE when it determines whether you performed substantial gainful activity. Also, if you receive SSI, the SSA will exclude the IRWE from your earned income when figuring the monthly SSI payment to you.

In limited situations, you may deduct from your gross earnings an IRWE for transportation costs when the transportation is provided by a family member. If a person with a disability pays a member of his family to drive him or her to and/or from work, such payment will generally not be deductible as an IRWE unless:

· It is established that the family member has been otherwise employed and suffers economic loss by reducing the number of work hours or terminating his or her own employment in order to perform such service; and

· The payment is made to the family member in cash (including checks or other forms of money); payment in kind (e.g., room and board) is not deductible.

Source: The Social Security Administration’s Program Operations Manual System (POMS) DI 10520.010D.3.5 and DI 10520.030H.

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