Social Security beneficiaries have just received their second payment of the year, bringing some much-needed relief to retirees across the United States. The payments were made to those eligible for the Cost of Living Adjustment (COLA) and were born between the 1st and 20th of the month. The beneficiaries born between the 1st and 10th of the month received their payments on February 14th, while those born between the 11th and 20th can expect to receive their payments on February 21st. Those beneficiaries with birthdates after the 21st of the month will receive their payments on February 28th, per the full schedule.
This year’s maximum amount for Social Security payments is $4,873, and retirees receive an average of $1,907 monthly. The good news is that this year’s fees are higher than last year’s, with an average increase of $58 compared to the 2023 amount. This increase will help retirees cope with rising living and medical expenses.
It is important to note that Social Security payments will not be affected by a government shutdown. Social Security and Medicare are mandatory spending and will continue even during a shutdown. However, some functions of the Social Security Office may be suspended, including benefit verifications, earnings record corrections and updates, payee accountings, prisoner activities, requests from third parties for queries, Freedom of Information Act (FOIA) requests, IT enhancement activities, public relations, and training, and overpayments processing.
Another issue that affects Social Security beneficiaries is taxes. If your total income is more than $25,000 for an individual or $32,000 for a married couple filing jointly, you must pay federal income taxes on your Social Security benefits. The portion of your benefits subject to taxation depends on your income level. For example, if you file a federal tax return as an “individual,” your income will fall under one of the following categories:
– Between $25,000 and $34,000: You may have to pay income tax on up to 50% of your benefits.
– More than $34,000: Up to 85% of your benefits may be taxable.
If you file a joint return with your spouse, your combined income will determine if your benefits are taxable. Your income will fall under one of the following categories:
– Between $32,000 and $44,000: You may have to pay income tax on up to 50% of your benefits.
– More than $44,000: Up to 85% of your benefits may be taxable.
Beneficiaries can use their benefit statement or the SSA-1099 form to prepare for tax season to determine if their benefits are taxable. The form is generally mailed each January to Social Security beneficiaries and shows the total benefits received from Social Security in the previous year. This information can be used to report Social Security income to the IRS on tax returns.
Social Security payments provide retirees a much-needed safety net during their golden years. With the recent increase in costs and the assurance that payments will continue even during a government shutdown, beneficiaries can rest easy knowing that their basic needs will be covered.
