Cola Increase Will Boost Payments
The most publicised of the changes coming in January is the cost-of-living adjustment increase. Every year the Social Security Administration enacts a percentage increase on all monthly payments to ensure that they keep up with inflation.
After inflation soared in 2022, Social Security recipients will receive an 8.7% COLA raise next year. This is the sharpest rise in nearly 40 years and will be music to the ears of claimants.
Millions Of Retirees Will Get A 59% Boost In Benefits For 2022
Ken Haddad, Digital Content Manager
The Social Security Administration has released the 2022 calendar that shows when to expect payments.
Millions of retirees on Social Security will get a 5.9% boost in benefits for 2022. The biggest cost-of-living adjustment in 39 years follows a burst in inflation as the economy struggles to shake off the drag of the coronavirus pandemic.
The COLA, as its commonly called, amounts to an added $92 a month for the average retired worker, according to estimates Wednesday from the Social Security Administration. Its an abrupt break from a long lull in inflation that saw cost-of-living adjustments averaging just 1.65% a year over the past 10 years.
With the increase, the estimated average Social Security payment for a retired worker will be $1,657 a month next year. A typical couples benefits would rise by $154 to $2,753 per month.
SS checks arrive on a different day of the month depending on the beneficiaries birthday.
Any birthdays that fall between the first and the 10th will be paid on the second Wednesday of each month. Those born between the 11th and 20th will be paid on the third Wednesday of the month. And those born between the 21st and 31st will be paid on the fourth Wednesday of the month.
Heres the 2022 Social Security payment calendar:
What If My Payment Doesn’t Come
The Social Security Administration asks that you first contact your bank or financial institution if your direct deposit or debit card funds aren’t received on time. You should then call Social Security at 1-800-772-1213 or contact your local Social Security office. The SSA asks that you wait three days before reaching out, however.
The risk of your benefits being stolen is greatly reduced if you use the direct deposit option because the money is transmitted electronically and directly to your bank account.
Also Check: Fresenius Medical Care Employee Benefits
The Rules For Child Support And Ssi
Child support rules vary by state.
When you support another child, the maximum amount that can be garnished is 50 percent of your Social Security benefit.
If you dont support another child 60 percent can be taken.
If the support is more than 12 weeks past due, 65 percent can be taken.
For SSI, the rules are different as SSI is protected even if the creditor can take regular Social Security.
Meanwhile, Social Security Disability Insurance can be garnished in the same way that Social Security can.
How Are Social Security Payment Dates Determined
The Social Security Administration sends out payments on three different Wednesdays of each month — the second, third and fourth. On which Wednesday you receive your money depends on your birth date. Payments for SSI recipients generally arrive on the first of each month . We’ll break it down.
- If your birthday falls between the 1st and 10th of the month, your payment will be sent out on the second Wednesday of the month.
- If your birthday falls between the 11th and 20th of the month, your payment will be sent out on the third Wednesday of the month.
- If your birthday falls between the 21st and 31st of the month, your payment will be sent out on the fourth Wednesday of the month.
Your payment date depends on your birthday and when you started receiving benefits.
Recommended Reading: Tax Benefit Of Donor Advised Fund
Who Can Claim Supplemental Security Income
Those who are over 65 years old, as well as people with a disability or blind, with little or no income, and beneficiaries qualify based on their assets.
Individuals can own up to $2,000 in assets while couples can have up to $3,000 jointly.
Among the exempt assets for the SSA we can find life insurance policies worth up to $1,500, the beneficiaryâs car, burial plots for the person and their immediate family, with burial funds up to $1,500, and finally the land or home where the person lives.
IR-2022-178, October 13, 2022
WASHINGTON Starting this week, the Internal Revenue Service is sending letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits but did not claim them by filing a 2021 federal income tax return. Many in this group may be eligible to claim some or all of the 2021 Recovery Rebate Credit, the Child Tax Credit, the Earned Income Tax Credit and other tax credits depending on their personal and family situation.
The special reminder letters, which will be arriving in mailboxes over the next few weeks, are being sent to people who appear to qualify for the Child Tax Credit , Recovery Rebate Credit or Earned Income Tax Credit but havenât yet filed a 2021 return to claim them. The letter, printed in both English and Spanish, provides a brief overview of each of these three credits.
Your Right To An Administrative Law Judge Hearing And Appeals Council Review Of Your Social Security Case
If you are eligible for Social Security or Supplemental Security Income Benefits, we want to make sure you get them on time and in the right amount. After we decide your benefit eligibility, we will either stop your benefits or change the amount, and we will send you a letter explaining our decision. If you disagree with our decision, you have the right to appeal it. When you ask for an appeal, Social Security may review the entire decision, including those parts which were favorable to you.
Also Check: Why Are Medicare Benefits Different By Zip Code
What Beneficiaries Can Expect In 2023
On Oct 13, 2022, the SSA announced its annual changes to the Social Security program for 2023. Starting Jan. 1, 2023, more than 65 million Americans will receive an 8,7.% COLA to their Social Security benefits.
This represents the largest cost-of-living adjustment since 1981, due to a spike in inflation resulting from ongoing economic difficulties caused by the COVID-19 pandemic. In 2022, the increase was 5.9% and, prior to that, COLA averaged just 1.65% per year over the previous 10 years while inflation remained low.
According to estimates released by the SSA, this increase will amount to more than $140 for the average retired worker, raising their total benefits to $1,827 per month in 2023. Couples, meanwhile, will experience an averagebenefits increase of $238 to $2,753 per month.
Disability benefit average payments will increase $119 to $1,483 per month. Disabled workers with a spouse and one or more children will experience an average$133 increase to $2,972 per month. Lastly, widows and widowers will find their averagebenefits increasing by $209 to $2,616 per month. Notably, widowed mothers with a minimum of two children will receive an average$282 increase to $3,520.
In addition to the COLA, several other major Social Security changes will go into effect in 2023:
Colorado: $750 Rebate Payments
Colorado is sending tax rebates of $750 to individual tax filers and $1,500 for joint filers. Colorado residents for the entire 2021 tax year who are 18 or older and filed their 2021 state income tax return are eligible for the payment.
Only physical checks will be sent out in an effort to prevent fraud. Most payments have already been mailed as of mid-August. Taxpayers who filed an extension can expect their check by January 31, 2023.
Also Check: Tenet Healthcare Employee Benefits 2021
Does Social Security Increase With Inflation
The answer to whether Social Security is adjusted for inflation or not, is a yes. Social Security benefits increase with a rise in inflation. The Social Security increase is directly proportional to the rising prices of goods and services. To understand this better, you first need to understand the connection between COLA and Social Security benefits.
The Social Security Administration calculates the Social Security COLA based on the Consumer Price Index for Urban Wage Earners and Clerical Workers . As per the 1972 Social Security Amendments, the CPI-W considers the change in the prices of groceries, housing, fuel, clothing, and more each year and adjusts the COLA for Social Security benefits accordingly.
The Social Security COLA is the difference between the CPI-W for the third quarter of the last year and the CPI-W for the current year. The increase in the CPI-W for the current year is known as the Social Security COLA. In the case of an increase, the Social Security benefits are increased accordingly. However, in the case of a drop in the CPI-W or if the value remains the same, there is no change in the benefits as the cost of living remains the same. This last happened in the year 2015.
The CPI-W moves upwards in the same direction as inflation. As a result, the cost of living also increases, and the Social Security benefits are adjusted in tandem.
Connecticut And The Eitcep
The second payment was sent to over 240,000 Connecticut residents in the past two months.
A total of $42million was mailed out last week and Saturday as part of the states Earned Income Tax Credit Enhancement Program .
The amount each person received varied based on their taxes, but the average payment was about $170.
You May Like: How Long To Keep Medicare Explanation Of Benefits
The Payment Date For Benefits Likely Depends On Your Birthday
David J. Rubin is a fact checker for The Balance with more than 30 years in editing and publishing. The majority of his experience lies within the legal and financial spaces. At legal publisher Matthew Bender & Co./LexisNexis, he was a manager of R& D, programmer analyst, and senior copy editor.
For most people that filed for Social Security on or after May 1st, 1997, your benefit payments will be sent out on the second, third, or fourth Wednesday of each month, depending on your day of birth. If you filed for Social Security benefits before May 1st, 1997, your payments will be sent out on the third of the next month. For example, you would receive your March benefit payment on April 3rd.
The same schedule typically applies if you’re collecting Social Security retirement benefits or Social Security disability benefits. However, if you’re receiving Supplemental Security Income benefits, you’ll be paid on the first of the month.
Fourth A $1400 Stimulus Check Is To Be Issued
Although various lobbyists have called for the option of issuing a fourth stimulus check, as of July, there is no guarantee that this will happen.
In fact, at this point, we are further away from this fourth check being issued than we were at the beginning of the year when it still seemed a fairly realistic probability. However, there are no indications to suggest that this is the case.
On the other hand, corresponding cost-of-living adjustments will likely continue to accrue throughout the year. It should recall that the cost-of-living adjustment in 2022 increased by 5.9%, one of the highest in the countrys recent history.
Thus, the Social Security Administration has issued estimates that envision the possibility of an increase of even 8% next year, thus meeting the challenge of high inflation. However, we will not know this until 2023.
Therefore, it is complex that will issue a fourth stimulus check. On the other hand, if the third check has not yet been cashed, you should start the claiming process.
Remember, first of all you should contact the relevant administration. They will likely require documents such as your 2020 tax return .
Lets think that, in the case of older people, the mortality rate caused by the pandemic was very high: someone who died in 2020 was not entitled to the stimulus stub for the year 2021.
You May Like: The Government Wants To Make Medicare Benefits Available
Social Security Schedule: When October 2022 Benefits Will Be Sent
The Social Security payment schedule for October 2022 will be business as usual for most people, though recipients who qualify for Supplemental Security Income wont be getting a payment due to a quirk in the payment schedule.
Because SSI recipients were issued two checks in September, no check will be sent in October. For all other Social Security recipients, October payments will follow the normal schedule. Here is a quick rundown:
If your birth date is on the 1st-10th of the month, your payment will be distributed on Wednesday, Oct. 12.
If your birth date is on the 11th-20th, your payment will be distributed on Wednesday, Oct. 19.
If your birth date is on the 21st-31st, your payment will be distributed on Wednesday, Oct. 26.
The average Social Security benefit for 2022 is $1,657 a month, CNET reported. That amount is expected to increase substantially in 2023 thanks to this years high inflation rate. The latest estimate for the 2023 cost-of-living adjustment is 8.7%, according to The Senior Citizens League, a non-partisan seniors advocacy group. That would be the highest COLA in more than 40 years and push the average benefit to about $1,800 a month in 2023.
As GOBankingRates previously reported, the average Social Security payment could reach $2,112 a month by 2030 if COLA trends follow the same pattern they have since 2001, when the average monthly payment was only $874.
Payment Schedule For 2023
Approximately half of older Americans reside in households where Social Security benefits comprise a least 50% of their income, and 25% of this group depend on their monthly payment for the majority of their earnings. As such, its important for retirees to be aware of when they will receive their benefits. While this is especially crucial to the 0.8% of beneficiaries who need to be on the lookout for a physical check each month, the remaining 99.2% still ought to know when their Social Security income is being direct deposited to ensure that they arent spending more money than they actually have.
Social Security retirement, disability, and survivors benefits all are distributed on one of three Wednesdays each month for beneficiaries who began receiving benefits after May 1997. When a beneficiary will receive their payments depends on their birth date, as described below:
- If you were born between the 1st and the 10th, you will receive your Social Security payments on the second Wednesday of each month.
- If you were born between the 11th and the 20th, you will receive your Social Security payments on the third Wednesday of each month.
- If you were born between the 21st and the 31st, you will receive your Social Security payments on the fourth Wednesday of each month.
Recommended Reading: Are Social Security Benefits Taxed After Age 66
How Much Is The Social Security Check Going To Be In 2022
After the 5.9% Social Security raise, the average Social Security check is expected to be $1,657 a month in 2022. This is a $92 increase from the $1,565 average payment in 2021. For a couple where both the partners are drawing their individual Social Security benefits, the benefits can amount to $2,753 per month. This is $154 higher than last year.
However, these numbers are not uniform as the Social Security benefits money can differ for different people based on their previous checks. If you were drawing less than $1,565 in 2021, you would not see a $92 increase this year. So, to calculate your new Social Security check for 2022, you have to add the 5.9% raise to your last drawn benefits check. For instance, if you earned $1,200 in 2021, your new check in 2022 will be $1270.8. You will receive a $70.8 raise in your benefits.
The precise increase for every retiree can be different. It will be more for people who draw higher benefits and lower for those who draw lower benefits. Therefore, to determine how your purchasing power is likely to increase for the New Year, you must calculate your benefits.
When Does The Social Security Administration Distribute Supplemental Security Income
Individuals who were born prior to May 1997or who receive both Social Security and SSIwill receive a payment for Social Security on the third day of each month. Should the third of the month be a weekend, payments will instead be issued on the first Friday of that month. Payments for SSI will arrive on the first day.
Read Also: How Much Is Social Security Spousal Benefit
Can I Claim A Stimulus Check For Someone Who Is Deceased
Yes. For the third stimulus check, people who have died on or after January 1, 2021, are eligible to receive the third stimulus check. However, for married military couples, the date of eligibility is expanded. If the person who died was a member of the military and died before January 1, 2021, the surviving spouse can still receive the third stimulus check, even if they dont have an SSN.
For the first and second stimulus check, the IRS has stated that people who died on or after January 1, 2020, are eligible to receive both payments.
If they didnt receive the stimulus payments or didnt receive the full amounts that they are eligible for, spouses or other family members can file a 2020 federal tax return and claim it as part of their tax refund or use GetCTC.org if they dont have a filing requirement. The deadline to use GetCTC.org is November 15, 2021.