14 Oct Will my Social Security benefits increase in 2023?
The Social Security press office announced on October 13, 2022 an 8.7% increase in benefits starting in January 2023. The 8.7% increase is the annual cost-of-living adjustment (COLA). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics. While some years there is not an increase, this is the largest increase in many years.
Social Security beneficiaries are normally notified by mail starting in early December about their new benefit amount. The fastest way to find out your new benefit amount and set up alerts for new announcements (text or email) is to log into www.ssa.gov/myaccount.
To view a COLA message from Acting Social Security Commissioner Kijakazi, please visit www.youtube.com/watch?v=Vgm5q4YT1AM.
If you are enrolled in Medicare, the premiums for 2023 are going down. Check the www.medicare.gov website for details. Currently you will have to go through the plan comparison tool for 2022 and 2023 to see the difference in costs.
Another January 2023 adjustment will be for those still working. The maximum amount of earnings subject to the Social Security tax will increase from $147,000 in 2022 to $160,200 in 2023. The Social Security tax is 6.2% on earnings up to the maximum amount. In 2023 that will be $160,200 which means the maximum amount of Social Security tax due in 2023 will be $9,932.40.
Medicare tax however has no maximum for earnings. For 2023 it continues to be 1.45% on all earnings and if your earnings as an individual are over $200,000 or $250,000 for married couples filing jointly there is an added .9% for a total 2.35% Medicare tax on all earnings.
Source: SSA.gov and a link to the press release is https://link.edgepilot.com/s/4153db2f/v42ImwPoHkOAe8NCaaK5UQ?u=http://www.ssa.gov/news/press/releases/2022/%2310-2022-2
This article is for educational purposes only. Content should not be construed as legal or tax advice. Consult with the Social Security office regarding your benefits and consult with an attorney or tax professional regarding your specific legal or tax situation.