(CBS Local)- The Social Security Administration announced Tuesday that benefits for about 70 million Americans will increase by 1.3% in 2021. The increase in benefits is a cost-of-living adjustment that will begin in January of the new year.
The Social Security Act ties the annual cost-of-living adjustment increases to the Consumer Price Index, which is determined by the Department of Labor’s Bureau of Labor Statistics.
READ MORE: CBS4 Investigates: Man Accused Of Killing Ryan Rogers Could Have Faced Two Decades In Prison For Prior CrimeMost Security and SSI beneficiaries will be able to view their cost-of-living adjustment notice online through their personal My Security account. In order to create an online account, beneficiaries can go to www.socialsecurity.gov/myaccount.
For more information on how the cost-of-living adjustment increases are calculated, visit www.socialsecurity.gov/cola.
READ MORE: Glenneisha Darkins Perseveres During Art Week Despite ChallengesProvided by the SSA, other important information for the 2021 year is as follows.
| Tax Rate | 2020 | 2021 |
| Employee | 7.65% | 7.65% |
| Self-Employed | 15.30% | 15.30% |
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. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes.
| 2020 | 2021 | |
| Maximum Taxable Earnings | ||
| Social Security (OASDI only) | $137,700 | $142,800 |
| Medicare (HI only) | No Limit | |
| Quarter of Coverage | ||
| $1,410 | $1,470 | |
| Retirement Earnings Test Exempt Amounts | ||
| Under full retirement age | $18,240/yr.
($1,520/mo.) |
$18,960/yr.
($1,580/mo.) |
| NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. | ||
| The year an individual reaches full retirement age | $48,600/yr.
($4,050/mo.) |
$50,520/yr.
($4,210/mo.) |
| 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. | ||
| Beginning the month an individual attains full retirement age | None | |
| 2020 | 2021 | |||
| Social Security Disability Thresholds | ||||
| Substantial Gainful Activity (SGA) | ||||
| Non-Blind | $1,260/mo. | $1,310/mo. | ||
| Blind | $2,110/mo. | $2,190/mo. | ||
| Trial Work Period (TWP) | $ 910/mo. | $ 940/mo. | ||
| Maximum Social Security Benefit: Worker Retiring at Full Retirement Age | ||||
| $3,011/mo. | $3,148/mo. | |||
| SSI Federal Payment Standard | ||||
| Individual | $ 783/mo. | $ 794/mo. | ||
| Couple | $1,175/mo. | $1,191/mo. | ||
| SSI Resource Limits | ||||
| Individual | $2,000 | $2,000 | ||
| Couple | $3,000 | $3,000 | ||
| SSI Student Exclusion | ||||
| Monthly limit | $1,900 | $1,930 | ||
| Annual limit | $7,670 | $7,770 | ||
| Estimated Average Monthly Social Security Benefits Payable in January 2021 | ||||
| Before
1.3% COLA |
After
1.3% COLA |
|||
| All Retired Workers | $1,523 | $1,543 | ||
| Aged Couple, Both Receiving Benefits | $2,563 | $2,596 | ||
| Widowed Mother and Two Children | $2,962 | $3,001 | ||
| Aged Widow(er) Alone | $1,434 | $1,453 | ||
| Disabled Worker, Spouse and One or More Children | $2,195 | $2,224 | ||
| All Disabled Workers | $1,261 | $1,277 | ||
