The maximum amount that may be claimed has been increased to $4,124 per month or $49,497 per year. This means that the average person receiving the benefit will get a monthly payment of $1657, an increase of more than $100 over 2021.
This gain, however, is countered by the United States’ constantly rising inflation rate. According to the latest current numbers available, inflation grew by 7% over the previous year. As a result, the 5.9 percent increase is negligible.
When the COLA in 2022 Will Begin
Monthly Social Security payouts are calculated mostly on the basis of beneficiaries’ birth dates. If your birthday falls on the first or tenth day of the month in which you were born, your payments are made on the second Wednesday of each month.
January 12 falls on a Sunday this month. If you were born between the 11th and 20th of the month, you would receive your checks on the third Wednesday of the month, which falls on January 19 this year.
If you were born between December 21st and December 31st, you will receive your benefits on the fourth Wednesday of the month. The date for this month is January 26.
How to Determine the Amount You Will Receive
You are not have to wait until January to learn your monthly benefit in 2022. The majority of beneficiaries have access to this information online via their My Social Security account. The Social Security Administration will often also send mail notices.
Additionally, you may determine your own monthly benefit amount for 2022. To get the amount of the increase, multiply your monthly bonus from this year by 1.059. Then subtract the anticipated Medicare Part B premium.
Your Medicare Part B premiums are decided by your income tier, which is determined by your updated yearly income from two years ago’s tax return.
The usual Part B premium will increase to $170.10 in 2022, up 14.5% from the previous year’s premium of $148.50. Individuals who earn more than a certain amount are required to pay an additional sum referred to as an income-related monthly adjustment amount.
Monthly premium payments are usually deducted directly from Social Security benefit checks.
When You Might Want to Adjust
Increased earnings may be accompanied by a rise in taxes. Many retirees get Social Security benefits in addition to other investments such as 401(k) plans or individual retirement accounts.
Social Security claimants whose combined wages reach certain thresholds – starting at $25,000 for individuals and $32,000 for couples – may be obliged to pay taxes on up to 85 percent of their benefits.
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(Combined revenue includes adjusted gross income, nontaxable interest income, and one-half of Social Security benefits.)
According to Joe Elsasser, founder and president of Coliseum, a Social Security claiming software company, it is frequently advantageous to reduce withdrawals from other taxable accounts in order to reduce the amount of Social Security benefits that are taxed.
“When Social Security payments are concentrated compared to other income, the overall picture tends to be much more tax effective,” Elsasser stated. If your income has decreased, you should contact the Social Security Administration to see if you qualify for a reduction in your Medicare Part B premium.