Parkersburg, WV, 8th April 2022, ZEXPRWIRE, If you are a beneficiary of social security or are headed towards becoming one this year, you have a reason to smile thanks to the recent changes in social security benefits. However, not all changes that occurred will make you happy. Some may leave a sour taste in your mouth.

Below is a breakdown of some important changes in social security benefits you may want to understand.

Monthly Benefits

The most significant change you will see in your social security benefits is in the five percent cost of living adjustment (COLA) on your Supplementary Security Income (SSI) and monthly retirement checks. This increment is the highest since 1982, so this may be wonderful news for you, despite the harsh economic times.

After the COLA adjustment, the average retiree will see a $92 increase to reach $1,657 a month, up from $1,565 in 2021. The retirement check for workers who retired at their full retirement age will increase by $197 to reach $3,345 per month.

The COLA adjustment will also increase the maximum SSI. Currently, the SSI is at $841 per individual and $1,261 per couple, representing $47 and $70 increments respectively. COLA adjustments are advised by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). 2022 COLA adjustment was based on the CPI-Ws of July, August, and September 2020.

Medicare Part B Hikes

While the 2022 benefit increment could be substantial, you may not get to see the full impact of the change reflected in your check because Medicare premiums are deducted directly from social security retirement payments. The Medicare Part B premiums increased by $21.60 to reach $170.10 in 2022.

This means you can expect to get $21.60 less than you would have after the COLA adjustment. According to the Senior Citizen League Part B, premiums have increased by 57.3 percent since 2013, with COLA adjustments rising by a meager 18 percent in the same period.

“These increments hurt folks with the lowest benefits most because they are the same individuals who get the lowest increments,” says Jan Dils of Jan Dils Attorneys at Law.

Credit for Work and Subtraction for Work

To qualify for retirement benefits under social security, a person must have accumulated at least 40 work credits equivalent to 10 years’ worth of qualifying work. This means every quarter makes one work credit. Also, you need to make a minimum amount of money in all quarters to qualify. In 2021, the minimum earning was $1,470 per quarter. This year the minimum is $1,510 per quarter, so you may want to ensure compliance.

Social security benefits are meant for individuals who have stopped working. But there are circumstances where a person may start receiving benefits and also have the opportunity to earn some money. Under such circumstances, the SSA will withhold $1 for every $2 earned above the set threshold at $51,960, up from $50,520 in 2021. But you do not lose the withheld money. The withheld monies will ensure a higher benefit for you once you stop earning.

Taxes

Social security taxes have remained largely the same; 6.2 percent paid by the employer and 6.2 percent deducted from your pay. Social security tax also remains the same for the self-employed at 12.4 percent.

However, the income subject to taxation has increased according to the COLA adjustments. In 2021, social security tax, also known as Old Age, Survivors, and Disability Insurance (OASDI), was limited at $142,800 of total earnings but now stands at $147,000.

Media Details:

Website: https://jandils.com/
Contact:
(877)-406-6295
Address:
963 Market St. Parkersburg WV   26101