The federal government is doing its best to help millions of Americans by giving financial payments. This is to ease the economic crisis brought on by the pandemic and inflation rate.
4 Financial Payments for Americans
Millions of Americans are about to receive different financial payments next year, according to the Social Security Administration. The good news is that some of these payments were either increased or adjusted. Here are the six financial payments, according to a published report in Aol:
8.7% Increase in COLA Will Take Effect
The Social Security COLA will grow by 8.7% in 2023, which will be the largest increase since 1981, when it increased by 11.2%. Due to this year’s extremely high inflation rate—which is also the highest in 41 years—the COLA will increase significantly next year. According to the SSA, the average monthly Social Security benefit for all retired employees will increase by $146 per month to an expected $1,827 in 2023 from its current $1,681 level.
Increase in Social Security Disability Thresholds
The Social Security Administration (SSA) provides monthly financial payments to those who have been unable to work for a year or more due to a disability, and these benefits typically last until the beneficiaries can resume regular employment. There are, however, some circumstances in which you can have a qualifying handicap even if you’re still employed, such as if your medical condition prevents you from performing the type of employment you were previously able to accomplish. In this instance, your eligibility is limited by your income.
SSI Federal Payment Standard Rises
The maximum Federal SSI financial payment for Social Security claimants who are also eligible for Supplemental Security Income (SSI) payments will increase in 2023 based on the 8.7% COLA. The average monthly income for people increases to $914 from $841 in 2022. The monthly payout for couples increases from $1,261 in 2022 to $1,371 in 2023.
Maximum Taxable Earnings Will Increase for Those Still Working
Every person who has ever gotten a paycheck is aware that a portion of it is deducted to cover Social Security taxes. The maximum taxable earnings are the maximum amount of your yearly earnings that can be taxed by Social Security. The ceiling will increase from $147,000 in 2022 to $160,200 in 2023.