The first Social Security Benefits 2023 with the biggest cost-of-living increase in 40 years will arrive in January 2023.

The average monthly Social Security Benefits 2023 for retirement is going up to $1,827 with an increase of $146. And the average monthly disability benefit is increasing to $1,483 with an increase of $119. Recipients will also benefit from a 3% decrease in the standard Medicare Part B premiums. Which will decrease to $164.90 a month, covering outpatient medical services such as regular doctor visits.

The 8.7% cost-of-living increase was implemented in response to the high inflation rates affecting the US economy in 2022. Social Security recipients were fortunate in timing. As the COLA calculation was officially taken during the months of July, August, and September when 12-month inflation was at 9%, 8.6%, and 8.5%, respectively. However, on Tuesday, the Bureau of Labor Statistics reported that inflation for wage earners had dropped to its lowest point in over a year, reaching 7.1%.

Social Security Benefits distribution

Individuals whose birthdays are between the 1st and 10th of the month will receive their payment on the second Wednesday. As a result, those with birthdays in this range can expect to receive their first payment on January 11th, as stated by the Social Security Administration.

Individuals whose birthdays fall between the 11th and the 20th of a given month. They can expect to receive their payment on the third Wednesday of the month. As a result, they should expect to receive their first payment of the new year on January 18th.

For those whose birthdays fall between the 21st and the end of the month. The payment will be received on the fourth Wednesday, with the initial payment for 2023 expected to arrive on January 25th.

Paraphrase: Recipients of Supplemental Security Income will still receive their payments on the 1st day of the month.

The taxation rules for Social Security benefits, excluding SSI, are being updated due to inflation and these benefits will still be taxable. For individuals who file taxes and have a total income, including non-Social Security earnings. Between $25,000 and $34,000, up to 50% of their Social Security benefits may be taxed. If the total income is above $34,000, they may have to pay taxes on 85% of their Social Security benefits. For joint tax filers, the threshold for 50% taxation begins between $32,000 and $44,000. And for 85% taxation starts at $44,000.

Source: NBC News Digital

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