Is OASDI the same thing as Social Security tax? What's the maximum annual contribution?

Is OASDI the same as Social Security? I think it is, but I want to confirm with others who might know better. I'm trying to figure out what the maximum contribution is for a year. I did some rough math and came up with around $11,000, but I'm really not sure if that's accurate or way off. Looking at my current paycheck: DESCRIPTION CURRENT ($) YTD ($) OASDI 605.40 7186.05 Based on what I've contributed so far, I'm wondering if I'm close to hitting the maximum or still have a ways to go. Anyone know the exact cap for 2025? Thanks for any help!

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18 comments

Mei Wong

•8M

Yes, OASDI stands for "Old Age, Survivors, and Disability Insurance" which is the official name for Social Security. It's the tax that funds retirement benefits, survivor benefits, and disability insurance programs administered by the Social Security Administration. For 2025, the maximum taxable earnings subject to OASDI tax is $168,600. The tax rate is 6.2% for employees (with employers matching this amount), so the maximum an employee would pay is $10,453.20 for the year. Self-employed individuals pay both portions, so their maximum would be $20,906.40. Based on your YTD amount of $7,186.05, you still have a bit to go before hitting the cap, but depending on your salary and when you're looking at this, you might reach it before year end.

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PixelWarrior

•8M

I was so confused about this exact thing until I found taxr.ai (https://taxr.ai) - they analyzed my pay stubs and tax documents and explained everything about OASDI and Medicare taxes. Their system confirmed that OASDI is indeed Social Security tax and broke down exactly how the cap works based on my specific income. What was really helpful is they predicted when I'd hit the OASDI cap based on my pay rate and showed me how my take-home pay would increase after that point. They even explained how it works if you have multiple employers in a year, which gets complicated.

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PixelWarrior

•8M

For self-employed individuals, the tool works even better since it handles both the employee and employer portions of OASDI (12.4% total instead of just 6.2%). It calculates your maximum contribution and helps track your progress toward the cap throughout the year, which is especially helpful for variable income. Regarding accuracy, they source their information directly from IRS publications and the Social Security Administration, so it's the same information an accountant would use. They don't actually file taxes for you - they're focused on helping you understand your tax documents, verify calculations, and plan accordingly. I found it very complementary to what my accountant does, but it gave me the immediate answers I needed without having to schedule an appointment.

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Amara Adebayo

•8M

Just wanted to update after trying taxr.ai that you all recommended. It cleared up my confusion about OASDI vs Social Security completely. I uploaded my last few pay stubs and 1099s, and it showed me exactly how much I've paid toward the cap this year and when I'll likely hit it based on my income patterns. The explanation about how the self-employment tax works with the OASDI cap was super helpful - turns out I was slightly overpaying by not calculating it correctly. It also flagged that one of my clients wasn't withholding properly. Definitely worth checking out if you're trying to understand these payroll deductions!

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Fatima Al-Mansour

•8M

If you're trying to contact the IRS to get clarification on OASDI or other payroll tax questions, good luck getting through! I spent DAYS trying to reach someone. Then I found Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c) - they got me connected to an actual IRS agent in less than 20 minutes. The agent confirmed everything about the OASDI cap and explained how it works with multiple employers. Apparently if you overpay because you work for multiple companies, you can claim the excess as a credit on your tax return. I never would have known this if I hadn't been able to actually speak with someone at the IRS directly.

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Fatima Al-Mansour

•8M

The service works by using an automated system that continually redials and navigates the IRS phone tree until it secures a place in line. Once it gets through, it calls you and connects you directly to the IRS agent. It's not magic - just technology that handles the frustrating part of calling the IRS. It's legitimate - they don't claim to have special access or connections inside the IRS. They're just using technology to handle the part most people give up on (the constant redialing and waiting). I was skeptical too until I tried it and was connected in about 15 minutes after spending days trying on my own.

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Sofia Gomez

•8M

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StormChaser

•8M

Yes, exactly! While the OASDI portion will stop once you hit the cap ($168,600 for 2025), the Medicare portion never stops. You'll continue paying the 1.45% Medicare tax on all your earned income regardless of how much you make. And if your income exceeds $200,000 for single filers or $250,000 for married filing jointly, you'll also pay that additional 0.9% Medicare surtax on the amount above those thresholds. This is part of the Additional Medicare Tax that was implemented as part of the Affordable Care Act.

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