Posted on 12/11/2022 6:17:46 AM PST by Oldeconomybuyer
* Social Security beneficiaries will soon see bigger checks to help them cope with record high inflation.
* As Social Security statements roll in, you should troubleshoot for errors that can cost you.
* Also keep in mind that higher income this year may affect your income taxes and Medicare premium surcharges in the future.
As inflation has kept prices high in 2022, Social Security beneficiaries may look forward to a record high cost-of-living adjustment in 2023.
“Your Social Security benefits will increase by 8.7% in 2023 because of a rise in cost of living,” the Social Security Administration states in the annual statements it is currently sending to beneficiaries.
The 8.7% increase will be the highest in 40 years. It is also a significant bump from the 5.9% cost-of-living increase beneficiaries saw in 2022.
The increase is “kind of a double-edged sword,” according to Jim Blair, a former Social Security administrator and co-founder and lead consultant at Premier Social Security Consulting, which educates consumer and financial advisors on the program’s benefits.
“It’s good for people on Social Security,” Blair said. “It’s not so good for the economy with inflation.”
Social Security benefit checks will reflect the increase starting in January.
The average retiree benefit will go up by $146 per month, to $1,827 in 2023 from $1,681 in 2022, according to the Social Security Administration The average disability benefit will increase by $119 per month, to $1,483 in 2023 from $1,364 in 2022.
What’s more, standard Medicare Part B premiums will go down by about 3% next year to $164.90, a $5.20 decrease from 2022. Medicare Part B covers outpatient medical care including doctors’ visits.
(Excerpt) Read more at cnbc.com ...
Up to 50% of Social Security income is taxable for individuals with a total gross income including Social Security of at least $25,000 or couples filing jointly with a combined gross income of at least $32,000. Up to 85% of Social Security benefits are taxable for an individual with a combined gross income of at least $34,000 or a couple filing jointly with a combined gross income of at least $44,000. Retirees with little income other than Social Security generally won’t be taxed on their benefits.
If you keep your earnings below these thresholds, none of it is taxed.
so $149 increase minus $119 increase is.....................
Never mind, my post
Thanks again for your help!
We’re getting a cost of living increase, but Medicare monthly premiums are going up too, should just about negate any increase.
Social Security is NOT taxed.
I didn’t realize the average draw was anywhere near that high. I guess I only know pikers.
See my post 21.
Social Security is NOT taxed.
https://jacksonllp.com/waive-patient-copay/
Having worked in medical reimbursement for several years, it is problematic for the provider to do so.
Upper level taxation is 85%. See post 21.
Stay away from Medicare ADVANTAGE Plans. They are NOT medicare. They are private insurance.The carrier you choose is re-imbursed by medicare a set amount for each of its customers.
So, it behooves the private insurance to make sure your medical bills don’t go over the medicare capitation.
Classic Medicare™ + Medex supplemental + medicare part D
Is all you need. (I ad dental coverage for an extra 36 dollars a month)
It’s not just Medicare premiums going up, so are the deductibles.
I’d still rather have an income of $150K and pay IRMAA than have an income of $75K and not pay IRMAA. And you?
—> If you keep your earnings below these thresholds, none of it is taxed.
True, but why choose a meager existence?
“The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983. These amendments passed the Congress in 1983 on an overwhelmingly bi-partisan vote.
The basic rule put in place was that up to 50% of Social Security benefits could be added to taxable income, if the taxpayer’s total income exceeded certain thresholds.
The taxation of benefits was a proposal which came from the Greenspan Commission appointed by President Reagan and chaired by Alan Greenspan (who went on to later become the Chairman of the Federal Reserve).
The full text of the Greenspan Commission report is available on our website.
President’s Reagan’s signing statement for the 1983 Amendments can also be found on our website.
A detailed explanation of the provisions of the 1983 law is also available on the website.”
https://www.ssa.gov/history/InternetMyths2.html
____________________________________________
“In 1993, legislation was enacted which had the effect of increasing the tax put in place under the 1983 law. It raised from 50% to 85% the portion of Social Security benefits subject to taxation; but the increased percentage only applied to “higher income” beneficiaries. Beneficiaries of modest incomes might still be subject to the 50% rate, or to no taxation at all, depending on their overall taxable income.
This change in the tax rate was one provision in a massive Omnibus Budget Reconciliation Act (OBRA) passed that year. The OBRA 1993 legislation was deadlocked in the Senate on a tie vote of 50-50 and Vice President Al Gore cast the deciding vote in favor of passage. President Clinton signed the bill into law on August 10, 1993.”
https://www.ssa.gov/history/InternetMyths2.html
That’s what plan my husband has, it is no longer offered as “F” but is is now “G” with the difference bring a $200 deductible. I signed up for G as I turn 65 in January. F has been a great plan. Mr Teadrinker has had several hand surgeries and 40 PT sessions over the last couple of years. No co pays and no balances due. Everything covered.
Yes, We have Anthem Bc/Bs Medicare Advantage. The dental benefits are great. Medicare Advantage is a wonderful option.
“We’re getting a cost of living increase, but Medicare monthly premiums are going up too, should just about negate any increase.
Medicare premiums are going down by about $5.20 per month.
It isn't so meager if you can avoid being taken in by the latest shiny thing. No debt. No credit cards. I'll do without many things, wants not needs, to avoid giving the various .govs another red cent. YMMV
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