If you are a social security beneficiary, you might already have noticed two distinct differences with your payments or benefits this year. This article will look at how Social Security Benefit checks differ this year, that is, 2022, from last year. The year of 2022 is well underway – and so to are Social Security payments for January. Read on if you are interested.
COLA Adjusted Payments
According to The Motley Fool, the first major difference that social security beneficiaries might notice could perhaps be quite beneficial for them. Because of the record-high increase of the cost-of-living adjustment – 5.9% – the greatest in 40 years – most social security beneficiaries will see around a $100 increase in payments or benefits.
For this reason, your monthly statements or checks might be bigger this year. This might be some cause to celebrate, and these funds are made available to social security beneficiaries so that you can better afford living costs with soaring high inflation rates.
According to the Motley Fool, however, it is very important to know that it might not be advisable to expect a full 5.9% increase in every check, though – this is because other programs such as medicare are also increasing. So, according to The Motley Fool, if your Medicare premiums are deducted directly off of your social security benefit checks – you might not see this big change in the payment amount.
More Taxes deducted
Another noticeable or major difference you might notice on your social security check or benefit statement this year is that your taxes might or might not have been deducted. As a senior who takes advantage of Social Security benefits, you have the option of setting funds aside to pay your taxes. In this respect, you can put aside amounts such as 7%, 10%, 12%, or 22%, respectively, according to The Motley Fool.
If you put aside percentages proportional to your tax payment – this might reflect something different on your Social Security benefit check this year. So, in essence – if your social security benefits increase this year because of the record-high cost of living adjustment – you might change tax brackets and have to pay higher taxes.
Remember that while Social Security is adjusted by the cost-of-living adjustment, which changes because of inflation – the amount of taxes paid per tax bracket does not. Keep this in mind when it comes to setting aside income for your taxes from your Social Security check.
Below is a link to the Social Security Authorities website. Please comment here if you found this article useful
Relevant Links:
Social Security Authority – ssa.gov