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Oct 30, 2008

All The COLAs

Earlier I had posted the Cost Of Living Adjustments (COLAs) for Social Security benefit payments and the user fee charged to those who represent Social Security claimants. Here are Social Security's tables showing all of the major adjustments (and a lot of things that should be adjusted for inflation, but are not, most notably the SSI resource limits which have never been adjusted for inflation since the SSI program was created more than 30 years ago):
Tax Rate
2008
2009
Employee
7.65%
7.65%
Self-Employed
15.30%
15.30%
NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings.

Maximum Taxable Earnings:
2008
2009
Social Security (OASDI only)
$102,000
$106,800
Medicare (HI only)
No Limit

Quarter of Coverage:
2008
2009
Earnings needed to earn one Social Security credit
$1,050
$1,090

Retirement Earnings Test Exempt Amounts:
2008
2009
Under full retirement age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
$13,560/yr.
($1,130/mo.)
$14,160/yr.
($1,180/mo.)
The year an individual reaches full retirement age
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.
$36,120/yr.
($3,010/mo.)
$37,680/yr.
($3,140/mo.)
There is no limit on earnings beginning the month an individual attains full retirement age.

Social Security Disability Thresholds:
2008
2009
Non-Blind
$ 940/mo.
$ 980/mo.
Blind
$1,570/mo.
$1,640/mo.
$ 670/mo.
$ 700/mo.

Maximum Social Security Benefit:
Worker Retiring at Full Retirement Age
2008
2009

$2,185/mo.
$2,323/mo.

SSI Federal Payment Standard:
2008
2009
Individual
$ 637/mo.
$ 674/mo.
Couple
$ 956/mo.
$1,011/mo.

SSI Resources Limits:
2008
2009
Individual
$2,000
$2,000
Couple
$3,000
$3,000

SSI Student Exclusion:
2008
2009
Monthly Limit
$1,550
$1,640
Annual Limit
$6,240
$6,600

Estimated Average Monthly Social Security Benefits Payable in January 2009:
Before
5.8% COLA
After
5.8% COLA
All Retired Workers
$1,090
$1,153
Aged Couple, Both Receiving Benefits
$1,773
$1,876
Widowed Mother and Two Children
$2,268
$2,399
Aged Widow(er) Alone
$1,051
$1,112
Disabled Worker, Spouse and One or More Children
$1,695
$1,793
All Disabled Workers
$1,006
$1,064

1 comment:

  1. "and a lot of things that should be adjusted for inflation, but are not, most notably the SSI resource limits which have never been adjusted for inflation since the SSI program was created more than 30 years ago" While the resource limits do need to be adjusted for inflation the above statement is inaccurate. In 1974 the SSI resource limit was $1500 for an individual and $2250 for a couple. Beginning in January 1985, the limit was raised each January until 1989, when they reached $2000/$3000. You can verifify this at https://secure.ssa.gov/apps10/poms.nsf/lnx/0501110003!opendocument

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