At a time when rising inflation is hitting many Americans hard, Fox Business News reports one group may be receiving a double whammy: seniors on a fixed income who rely on Social Security.
Social Security recipients who have income above certain levels wind up with part of their benefits subject to income tax. Since 1984, single individuals with $25,000 in total income from all sources, and couples with $32,000, have found their benefits subject to taxes. Those earning $34,000 individually and $44,000 as a couple, have as much as 85 percent of their benefits taxed.
Because of record-high inflation, the annual cost-of-iving adjustment (COLA) for Social Security beneficiaries could rise as high as 10.5 percent in 2023, pushing some seniors into income brackets where their benefits would be taxed.
Financial analysts estimate the amount of benefits taxed in 2022 could grow by 10 percent, with a similar increase expected for 2023.
One other downside of the possible COLA increase is that some Social Security recipients with increased income might become ineligible for food stamps.
Council of Seniors Wants Stronger Benefits Protected
Here at Council of Seniors, we’re concerned with helping seniors get what they deserve. We’re trying hard to get Congress to pass The SAVE Benefits Act. Passage of this bill can make up for the Social Security cost of living adjustment that was not paid or was meager in some recent years. Eligible seniors will be reimbursed the missing $581 if it passes.
Signing our petition is the first step you can take to help. Working together, we can show Washington politicians the serious need for this bill.
Are you already paying taxes on part of your benefits? Leave us a comment and let us know.
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