There will be a 1.3% increase in Social Security and Supplemental Security Income (SSI) benefits beginning 2021. This represents a slightly smaller cost-of-living increase (COLA) than 2020. Increased payments to Social Security recipients will begin on January 2021, while increased payments to those receiving SSI will be included in their checks on December 31, 2020.
Social Security and SSI Benefit Amounts
The new SSI max amount is $794 per month for an individual and $1,191 per month for a couple. The SSI payment may be higher in states that apply a supplementary SSI payment.
While Social Security retirement and disability benefits depend on the lifetime earnings of the recipient, below are the average benefit amounts for year 2021:
average retirement benefit: $1,543
average disability benefit: $1,277
average widow's or widower's benefit: $1,453
If you are at full retirement age, the maximum social security retirement amount at full retirement age is $3,148 per month in 2021. Its important to not that for some recipients, the small 1.3% increase may somewhat offset by increases in Medicare Part B premiums.
Being Eligible For Disability While Working
If you’re applying for disability benefits through the Social Security disability insurance (SSDI) or SSI programs, you must be making less than $1,310 per month in 2021 (Blind applicants can make up to $2,190 per month). If you’re earning more then that amount, you will not be eligible for disability benefits. If youre currently receiving SSDI benefits and attempt to return to work, you will go through a trial work period program. If you are earning more than $940 per month, that month will count as a trial work month.
For those of you who are receiving SSI, the new income limit for SSI is $794 per month, but over half of the income made by an SSI recipient is not counted toward the limit, so you can receive SSI until you make up to $1,672 per month. But keep in mind that any income received between $0 and $1,672 will reduce the monthly benefit. So for example, let’s say you earn $1,500 a month and have no other income, your SSI check will be only $86.50. This is because your benefits are offset by what you are earning.
Receiving Early Retirement While Working
If you are collecting early retirement benefits but continue to work, your benefits will be reduced when they make over $18,960 per year or $1,580 per month. After you reache full retirement age, benefits are not reduced at all, regardless of the amount of money you are earning. Any early retirement benefits deducted while you are working, are added back to your retirement check over the next 10 to 15 years.
What’s The Amount of Social Security Taxes Withheld
The maximum amount of earnings that is subject to Social Security tax is $142,800 in 2021, which is up from $137,700 in the previous year. There is no limit to the amount of income subject to the Medicare tax.
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