An increased number of Americans finds itself dependent on Social Security each year and clearly, it is very important for them to track the revisions their Social Security and Supplemental Security Income (SSI) benefits are up for. In case you are one of the many people counting on Social Security, read on for some quick information in this regard.
No Raise in 2016
Social Security depends on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), calculated by Bureau of Labor Statistics to ensure that your buying power stays unchanged from year to year. Since there is no rise in CPI from third quarter of 2014 to the third quarter of 2015, the recipients will not be getting a raise in 2016.
No Cost of Living Adjustment
The stagnant CPI-W, however, has brought good news too. There is no additional tax-cap for earnings above $118,500 in 2015. So if you are paying in to Social Security but making some side-money too, you need not worry about further Social Security taxes to be deducted from your income.
Watch your Earnings
In case you decide to keep working after you begin to receive Social Security benefits, your eligibility for full payment takes the toll. Remember it is your job to notify Social Security Administration of your earnings in case you exceed the threshold. If you don’t, and keep receiving the excess benefits, they’ll come to know when you file the tax anyway which might lead to grave circumstances.
Maximum Paycheck Is Declining
If you were receiving maximum social security benefits, you will notice a slight drop in them in 2016. The maximum paycheck will decline from $2,663 per month in 2015 to $2,639 in 2016, explains Social Security Administration. It happens when the national average wage index rises in the absence of Cost Of Living Adjustment (COLA).
