Home National Social Security Announces 1.7 Percent Benefit Increase for 2015

Social Security Announces 1.7 Percent Benefit Increase for 2015

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social security   Monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 64 million Americans will increase 1.7 percent in 2015, according to the Social Security Administration.
The 1.7 percent cost-of-living adjustment (COLA) will begin with benefits that more than 58 million Social Security beneficiaries receive in January 2015. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2014. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
Some other changes that take effect in January of each year are based on the increase in average wages.  Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $118,500 from $117,000. Of the estimated 168 million workers who will pay Social Security taxes in 2015, about 10 million will pay higher taxes because of the increase in the taxable maximum.
Information about Medicare changes for 2015 is available at www.Medicare.gov.
The Social Security Act provides for how the COLA is calculated. To read more, please visit www.socialsecurity.gov/cola.

SOCIAL SECURITY
2015 SOCIAL SECURITY CHANGES
Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2013 through the third quarter of 2014, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 1.7 percent COLA for 2015.  Other important 2015 Social Security information is as follows:
2014                            2015
Tax Rate:
Employee                                                                                7.65%                         7.65%
Self-Employed                                                                        15.30%                       15.30%
NOTE:  The 7.65 percent tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20 percent on earnings up to the applicable taxable maximum amount (see below).  The Medicare portion (HI) is 1.45 percent on all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.
Maximum Taxable Earnings:
Social Security (OASDI only)                                               $117,000                    $118,500
Medicare (HI only)                                                                            N o    L i m i t
Quarter of Coverage:                                                          $   1,200                     $    1,220

Retirement Earnings Test Exempt Amounts:
Under full retirement age                                                         $15,480/yr.                  $15,720/yr.
($1,290/mo.)                ($1,310/mo.)

NOTE:  One dollar in benefits will be withheld for every $2 in earnings above the limit.
The year an individual reaches full                                         $41,400/yr.                  $41,880/yr.
retirement age                                                                         ($3,450/mo.)                ($3,490/mo.)
NOTE:  Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit. There is no limit on earnings beginning the month an individual attains full retirement age.

Social Security Disability Thresholds:
Substantial Gainful Activity (SGA)
Non-Blind                                                      $1,070/mo.                  $1,090/mo.
Blind                                                                $1,800/mo.                  $1,820/mo.
Trial Work Period (TWP)                                                       $770/mo.                     $780/mo.

Maximum Social Security Benefit:  Worker Retiring at Full Retirement Age:
$2,642/mo.                   $2,663/mo.

SSI Federal Payment Standard:
Individual                                                                             $721/mo.                       $733/mo.
Couple                                                                                   $1,082/mo.                   $1,100/mo.

SSI Resources Limits:
Individual                                                                            $2,000                             $2,000
Couple                                                                                  $3,000                              $3,000

SSI Student Exclusion:
Monthly limit                                                                      $1,750                         $1,780
Annual limit                                                                        $7,060                         $7,180

Estimated Average Monthly Social Security Benefits Payable in January 2015:

Before                         After
1.7% COLA                 1.7% COLA

All Retired Workers                                                                $1,306                         $1,328
Aged Couple, Both Receiving Benefits                                $2,140                         $2,176
Widowed Mother and Two Children                                   $2,635                         $2,680
Aged Widow(er) Alone                                                           $1,253                         $1,274
Disabled Worker, Spouse and                                               $1,943                         $1,976
On

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