Upcoming Social Security changes that could benefit some yet cost others
No substantive change in law is expected by Congress with regard to Social Security this year. Yet some changes occur automatically each January 1st, mostly as a result of inflation. Maurie Backman forecasts a robust cost of living adjustment (COLA), as all who follow the program have been predicting given current high inflation. The exact amount will not be known until mid October, as third quarter data is used. The earnings limit will go up substantially as well. But a cost to people will be that more wages, or earnings, will be subject to the payroll tax. The current cap is $147,000. That could climb by over $10,000 in additional income taxed if the COLA is over 7%, which is predicted. Backman’s full article here.