COLA Social Security Payment 2022: Who’ll Get $1,657 Checks by the End of January?

Last year, the US Bureau of Labor Statistics announced the COLA adjustment, which showed a 5.9 percent raise. Because of the significant rise, the maximum amount of money claimed through Social Security is the biggest in years.

The maximum amount claimed has increased to $49,497 per year or $4,124 per month. For the typical person receiving the benefit, this implies that your monthly payout will rise to $1657, an increase of more than $100 over 2021.

However, this benefit is offset by rapidly growing inflation in the United States. In the most recent accessible statistics, inflation increased by 7% over the previous year. Therefore, the 5.9 percent rise is insignificant.

When the 2022 COLA Will Start

Beneficiaries get monthly Social Security benefits primarily based on their birth dates. If your birthday comes between the 1st and 10th of the month you were born, Your payments are made on the second Wednesday of each month.

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This month, January 12, falls on a Sunday. If you had been born between the 11th and 20th of the month, your checks would be mailed to you during the third Wednesday of the month, which is January 19 this year.

If you had been born between the 21st and 31st of December, your benefits are paid on the fourth Wednesday of the month. This month’s date is January 26.

How to Calculate How Much You’ll Receive

You don’t need to anxiously wait until January to find out your monthly benefit in 2022. Most beneficiaries have online access to such information through their My Social Security account. Typically, the Social Security Administration will also issue postal notices.

You can also calculate your monthly benefit amount for 2022 on your own. To figure out how much of an increase you will get, multiply your monthly benefit from this year by 1.059. Then deduct your projected Medicare Part B premium.

The amount of Medicare Part B premiums you will pay is determined by your income tier, assessed by your revised annual income from two years ago’s tax return.

COLA Social Security
COLA Social Security

The regular Part B premium for 2022 will be $170.10, a 14.5 percent increase over the previous year’s premium of $148.50. People who earn more than a specific amount must pay an extra amount known as an income-related monthly adjustment amount.

Payments for monthly premiums are frequently withdrawn straight from Social Security benefit checks.

When You May Want to Make Adjustments

Increased earnings may result in increased taxes. Many retirees have a mix of Social Security payments and other investments, such as 401(k) plans or individual retirement accounts.

Social Security recipients with combined earnings exceeding specific criteria – beginning at $25,000 for individuals and $32,000 for couples – may be required to pay taxes on up to 85 percent of their payments.

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(Adjusted gross income, nontaxable interest income, and one-half of Social Security payments are all included in combined revenue.)

According to Joe Elsasser, founder, and president of Coliseum, a Social Security claiming software firm, it often makes sense to decrease withdrawals from other taxable accounts and lower the amount of Social Security payments that ends up being taxed.

“Whenever there is a higher concentration of Social Security payments relative to other income, you tend to have a lot more tax efficient overall picture,” Elsasser explained. Whether your income has decreased, you should contact the Social Security Administration to check if your Medicare Part B premium might be reduced.

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