Did you know that people who collect Social Security are about to see bigger checks? This bump will help beneficiaries keep up with the rising costs due to inflation. The cost-of-living adjustment (COLA) in 2022 will be 5.9%, which is the largest increase in about 40 years!
Check out some important 2022 Social Security Facts:
The Tax Rate 7.65% – Will remain the same as last year. The 7.65% is the combined rate for Social Security and Medicare. The Social Security portion is 6.20% on earnings up to the applicable taxable maximum amount. The Medicare portion is 1.45% on all earnings. Here is how the applicable taxable maximum amount is applied.
Maximum Taxable Earnings
Social Security portion 2021 – $141,800 2022 – $147,000
Medicare portion 2021 – No Limit 2022 – No Limit
Quarter of Coverage
2021 – $1,470 2022 – $1,510
Retirement Earnings Test Exempt Amounts
To continue receiving your SSA cash benefit while working the annual earned income limits
Under full retirement age 2021 – $18,960/year 2022 – $19,560/year
($1,580/mo.) ($1,630/mo.)
Note: one dollar in benefits will be withheld for every $2 in earnings above the limit.
The year an individual reaches full retirement age the annual earnings limit is:
2021 – $50,520/year 2022 – $51,960/year
Note: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earning above the limit.
Social Security Disability Thresholds
Substantial Gainful Activity (SGA)
Non-Blind 2021 – $1,310/mo. 2022 – $1,350/mo.
Blind $2,190/mo. $2,260/mo.
Trail Work Period (TWP) $940/mo. $970/mo.
Maximum Social Security Benefit: Worker Retiring at Full Retirement Age
2021 – $3,148/mo. 2022 – $3,345/mo.
SSI Federal Payment Standard
Individual 2021 – $794/mo. 2022 – $841/mo.
Couple $1,191/mo. $1,261/mo.
SSI Resource Limits
Individual 2021 – $2,000 2022 – $2,000
Couple $3,000 $3,000
SSI Student Exclusion
Monthly Limit 2021 – $1,930 2022 – $2,040
Annual Limit $7,770 $8,230
Estimated Average Monthly Social Security Benefits Payable in January 2022
Before 5.9% COLA After 5.9% COLA
All Retired Workers 2021 – $1,565 2022 – $1,657
Aged Couple, both
receiving benefits 2021 – $2,599 2022 – $2,753
Widowed Mother &
2 Children 2021 – $3,009 2022 – $3,187
Aged Widow(er) Alone 2021 – $1,467 2022 – $1,553
Disabled Worker, Spouse
and 1 or more children 2021 – $2,250 2022 – $2,383
All Disabled Workers 2021 – $1,282 2022 – $1,358
This is a snapshot of the cost- of-living changes for 2022. Give us a call with any questions or for more information on how these changes may impact your specific situation. 888-359-2366 ~ Tina
Or visit the Social Security link https://www.ssa.gov/cola/
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