Social Security's 2023 Raise Could Have a Massive Downside
In 2023, Social Security recipients are expected see their checks grow by 2% thanks in large part due the COLA adjustment
which will help keep up with sky high inflation rates but there could be some hidden costs for seniors that don't receive this increase because of changes made under current law
The Social Security Administration announced this year's COLA on October 22, 2022. It is based off of third-quarter inflation data which we are still observing halfway
through the quarter right now and will be for about two months more before reaching the end of it in December 2020 when they release next years' cost adjustment factor
formula used by SSA to calculate monthly benefits payable out from February 2021 until 2034 assuming someone had paid into neither Medicare nor employment sponsored health insurance
If you're a senior, it's possible that the federal government could tax your Social Security benefits for the first time next year.
This all depends on how much AGI or income from nontaxable interests plus half of any annual retirement checks is included in total
So what does it mean to "lose" 50% or 85% of your benefits back? It depends on whether you fall into one or both brackets.
for example: -you are aged under age 65 and have earnings below $12K per year (the majority of people in this category),
then EVERYTHING YOU EARNED IS TAXABLE AT YOUR LAWFUL SOCIAL SECURITY RATE OF INCOME