Previous blog posts have indicated that Social Security beneficiaries, which include those who receive retirement, disability and survivor’s benefits, will see a very modest increase in their benefits for 2017. The cost of living adjustment (COLA) is a 0.3 percent increase. This equates to about a $5 monthly increase to the average American who receives retirement or Social Security Disability Insurance (SSDI) benefits. Americans who receive Supplemental Security Income (SSI), which is a program for disabled and older Americans who meet certain financial requirements, will only see there monthly benefits increase by about $2 per month. The maximum monthly SSI payment will go from $733 to $735. The maximum amount a married couple that is disabled, or otherwise qualified for SSI payments, can receive up to a total of $1,103 per month.
These are not the only changes people can expect from Social Security in 2017. The monthly amount considered to be substantial gainful employment (SGA) will increase from $1,130 to $1,170 in gross income earned from work related activities. Anyone earning this amount or more will not be considered to be disabled, regardless of impairments they may suffer from, by the Social Security Administration. Those who file a claim for disability benefits and earn less than this amount from work can be evaluated for disability benefits.
No matter how much a person pays into Social Security there is a maximum payment someone can receive from either retirement or SSDI benefits. In 2016 the maximum monthly amount was $2,639. This will increase by $48 per month to $2,687 in 2017.
Currently an individual’s income is only taxed by Social Security on the first $118,500 they earn annually and Social Security taxes do not apply to any income earned over this amount, but that will change in 2017. Social Security taxes will now apply to the first $127,200 an individual earns.
These are just some of the changes to expect in 2017, for a more complete list click here.
