The US Social Security Administration (SSA) plays a crucial role in supporting the underprivileged and disabled through SSI and SSDI programs. In 2024, significant updates are expected for these programs, including notable raises that beneficiaries should be aware of. Let’s cut into the key elements of these changes.
The SSA has announced four Social Security raises in 2024, providing increased benefits for those who meet the eligibility criteria. This article will look into these raises, the eligibility requirements, and the application process.
In 2024, Social Security beneficiaries can expect an increase in their SSI and SSDI payments, driven by economic factors like the cost-of-living adjustment (COLA). This year’s COLA is set at 3.2%, impacting the overall benefits received by most Americans. This increase helps cover essential expenses such as food, medication, and bills.
Here’s the payment schedule for Social Security benefits in July 2024:
Particulars
Payment Date
Birth Date 1st to 10th
10 July 2024 (Second Wednesday)
Birth Date 11th to 20th
17 July 2024 (Third Wednesday)
Birth Date 21st to 31st
24 July 2024 (Fourth Wednesday)
SSI recipients before 1997
1 July 2024
SSDI recipients before 1997
3 July 2024
Social Security Changes
Recipients of Social Security income receive an annual cost-of-living adjustment (COLA) to help maintain their purchasing power as living expenses rise. In 2024, benefits increased by 3.2%, though predictions suggest a lower COLA for 2025 due to current inflation data.
Earnings Increase
Social Security beneficiaries can work and earn money while receiving benefits. However, exceeding earnings limits before reaching full retirement age (FRA) can result in withheld benefits.
To qualify for Social Security upon retirement, you need up to four lifetime work credits annually. The value of a work credit can vary, impacting eligibility.
Salary Cap Rise
Social Security funding primarily comes from payroll taxes. The taxable income amount is determined by an annual wage cap, which adjusts to ensure adequate funding for Social Security.
Knowing these changes and their implications is essential for beneficiaries. The SSA aims to provide better financial security and support for those in need, ensuring that eligible individuals can benefit from these increases.
2024 promises significant updates to Social Security, reflecting the ongoing efforts to adapt and improve these vital programs for the benefit of all.
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A tax law expert with a knack for breaking down complex regulations into digestible insights. Ehsteem's articles on the tax news blog offer invaluable guidance to readers navigating changes in tax legislation.