When you have wages or self-employment income that is covered by Social Security, you pay Social Security taxes each year up to a maximum amount that is set by law. That amount has changed frequently over the years. The maximum earnings for each year since Social Security taxes were first collected in 1937 are shown below. If you earned more than the maximum in any year but had only one job, the amount shown in the "Your Taxed Social Security Earnings" column will be just the maximum amount. If you had more than one job, the total that is recorded may be more than the maximum. However, only the maximum amount will be used to calculate your benefit estimates.

The 2007 maximum earnings amount is $97,500 and was $94,200 in 2006.

NOTE: When you have more than one job in a year, each of your employers must withhold Social Security taxes on your wages without regard to what the other employers may have withheld. You may then end up with total Social Security taxes withheld that exceed the maximum.

Example: In 2006, you worked at company A and earned $60,000. At company B, you earned $51,000. Together, Social Security taxes on $110,000 were withheld for the year, but the maximum taxable earnings for 2006 were only $94,200.You can claim a refund of the excess taxes that were withheld when you file your 2006 personal income tax return with the Internal Revenue Service (IRS) in 2007.