Latest US Bill Boosts Social Security Payments: Details & Updates

Updated on February 12, 2024

This article covers the recent US bill that raises Social Security payments. Learn how it operates and get the latest updates on this federal financial assistance for low-income, disabled, and retired individuals. Each year, the government adjusts these bills to address inflation and the cost of living. Discover more about the new changes in Social Security checks in the US by reading further.

A new bill that would increase US Social Security benefits

With the latest Cost of Living Adjustment, Social Security benefits have increased by 3.2%, effective from January 2024. This adjustment applies to various federal social security benefits, including SSI and SSDI. The increase is determined by the Federal Social Security Act, which considers changes in the Consumer Price Index (CPI). The adjustment is based on the average for the third quarter of the previous year. The new bills, part of the recent legislation, round the increase to the nearest tenth of one percent, complying with laws that require average CPI-W measurements for inflation and tax-related adjustments.

How does it work?

The recent bill boosting Social Security checks in the US addresses the challenges of the rising cost of living and inflation. The Cost of Living Adjustment (COLA) plays a crucial role in impacting the monthly benefits of social security beneficiaries. This adjustment ensures that over 70 million Americans, including children and the elderly, receive monthly benefits through the Social Security old age and disability programs.

Social Security benefits play a crucial role in preventing millions of Americans from falling into poverty. The 2024 Cost of Living Adjustment (COLA) not only increases monthly benefits but also results in higher taxes for recipients. There are widespread misconceptions among beneficiaries. With a 3.2% increase, the average monthly benefits have risen to $1,907. In 2024, retirees receiving social security can expect monthly checks up to $4,873.

Latest News & Updates

The new bill increasing Social Security checks in the US comes with a unique aspect: higher tax bills for beneficiaries in 2024. This quirk in the Social Security System means that beneficiaries must pay federal income taxes based on their income threshold. As more seniors become subject to taxation each year, their benefits generally increase with the cost of living adjustment.

For individual taxpayers earning between $25,000 and $34,000, income tax of up to 50% may apply, while those above $34,000 could face an 85% taxable benefit. Joint filers with incomes between $32,000 and $44,000 may be subject to a 50% tax rate. Currently, fewer than 10% of Social Security recipients pay taxes on their benefits, but this number has been increasing by 40%, according to the Social Security Administration.

Some workers are set to experience higher taxes on their social security as the Internal Revenue Service adjusts the maximum earnings threshold, which has not kept pace with inflation. The Cost of Living Adjustment (COLA) plays a vital role in preserving the purchasing power of social security benefits against the impact of inflation. The percentage increase is determined based on the Consumer Price Index for urban wage earners, as reported by the Bureau of Labor Statistics.

The recent bill increasing Social Security checks in the US reflects these adjustments in response to the rising cost of living and inflation. The Social Security Administration annually incorporates changes by referencing the consumer price index of the third quarter. This ensures that Social Security beneficiaries receive adjusted rates for both benefits and taxes, taking into account the changes in the CPI.

 

 

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