HAPPY HALLOWEEN - SOME TREATS FROM THE SOCIAL SECURITY ADMINISTRATION

The Social Security Administration announced yesterday that –

“Monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 63 million Americans will increase 1.5 percent in 2014, the Social Security Administration announced today.

The 1.5 percent cost-of-living adjustment (COLA) will begin with benefits that more than 57 million Social Security beneficiaries receive in January 2014.  Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2013.”

SSA also announced that “the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $117,000 from $113,700”.

For those who decide to collect at or after age 62 but before the full retirement age, $1 in benefits will be withheld for every $2 in earnings above $15,480 per year, or $1,290 per month.  

In the year an individual reaches full retirement age, $1 in benefits will be withheld for every $3 in earnings above $41,400 per year, or $3,450 per month.  This applies only to earnings for months prior to attaining full retirement age.  There is no limit on earnings beginning the month an individual attains full retirement age.

 

Click here for a Fact Sheet.

According to Medicare -

“Premiums for Medicare Part B will stay at $104.90 a month for 2014, the same as in 2013, according to the Center for Medicare Services. Premiums have either decreased or stayed the same for the past three years. The deductible will also remain at $147.”

Taxpayers with higher incomes, which could include otherwise tax-exempt interest, will continue to pay higher Medicare Part B premiums.  See the below chart -

 

If your yearly income in 2012 was -			Your 2014 Medicare Premium is -
File individual tax return	File joint tax return	File married & separate tax return
$85,000 or less	$170,000 or less	$85,000 or less	$104.90
above $85,000 up to $107,000	above $170,000 up to $214,000	Not applicable	$146.90
above $107,000 up to $160,000	above $214,000 up to $320,000	Not applicable	$209.80
above $160,000 up to $214,000	above $320,000 up to $428,000	above $85,000 and up to $129,000	$272.70
above $214,000	above $428,000	above $129,000	$335.70

 

TTFN