2023 Changes to Social Security - Motley Fool
With all of the hoopla about the 2023 Cost of Living Adjustment (COLA) yielding an historic 8.7% increase in the Social Security benefit amount, some other changes in the program may have gone largely unnoticed. They are, however, nonetheless important, especially to those Americans who are still working. For one thing, the payroll tax cap – the amount on which you will pay Social Security and Medicare tax from your earnings – has gone up, from $147,000 in 2022 to $160,200 in 2023. That means that many Americans will be contributing more of their hard earned cash to the Social Security program. Also for those still working who are collecting benefits before their full retirement age, the amount which can be earned before running awry of Social Security’s annual earnings limit has changed. Plus it will take more in 2023 to earn each “quarter” credit for Social Security eligibility purposes. All of these changes are explained in this Motley Fool article by Maurie Backman.
Also, if you’re unsure about how these basics apply to you, or if you have any questions about your individual situation under Social Security, note that the AMAC Foundation provides a free-to-the-public advisory service to help Americans navigate the complexities of this program. Learn more about it here…