At Tabak Law, we recognize the importance of Social Security Disability Insurance (SSDI) for individuals and families experiencing financial difficulties due to disability. Every year, the Social Security Administration adjusts SSD benefits based on Cost-of-Living Adjustments (COLA), to help beneficiaries keep up with inflation.
How SSDI COLA Adjustments Are Calculated
The Social Security Administration (SSA) determines the cost-of-living adjustment (COLA) based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index measures inflation by tracking the prices of goods and services. If the CPI-W rises from the third quarter of the previous year to the third quarter of the current year, Social Security Disability Insurance (SSDI) benefits will increase accordingly.
For 2026, the specific COLA increase has not been finalized yet, but projections indicate a potential increase between 2.5% and 3.2% based on current inflation trends.
Historical COLA Increases for SSDI
- 2025: 3.2% (estimated)
- 2024: 3.2%
- 2023: 8.7% (highest increase in decades)
These adjustments help ensure that SSDI benefits do not lose their purchasing power over time.
How the 2026 SSDI Increase Affects Milwaukee Beneficiaries
For Milwaukee residents, Social Security Disability Insurance (SSDI) benefits are a crucial lifeline, particularly given the increasing costs of housing, healthcare, and everyday necessities. A 3% cost-of-living adjustment (COLA) increase in 2026 would mean:
- The average monthly SSDI payment, which was approximately $1,537 in 2025, could rise by approximately $46 per month.
- The maximum monthly benefit, which was around $3,822 in 2025, could increase by about $115.
These changes help offset inflation, but many recipients still face challenges due to strict eligibility requirements and delays in approval. If you have had your claim denied or are experiencing financial difficulties, our Milwaukee disability attorneys can assist you in appealing and securing the benefits you rightfully deserve.
Legal Considerations for SSDI Beneficiaries
1. SSDI Eligibility and Appeals
Even with COLA increases, many applicants are initially denied benefits. The Social Security Administration (SSA) requires extensive medical documentation and proof of disability, including consistent treatment records and statements from physicians confirming your inability to work.
If your claim was denied, you have 60 days to file an appeal. It’s crucial to act quickly in order to preserve your rights and increase your chances of winning your case. Filing an appeal can lead to a reconsideration or hearing before an administrative law judge.
Working with an experienced disability attorney can greatly improve your chances of success. They can help ensure your case is prepared and presented in the best possible way. Early intervention and strong medical evidence can help overcome common reasons for denial, such as insufficient documentation or lack of work credits.
2. Impact on Other Benefits
Some SSDI recipients may also be eligible for Supplemental Security Income (SSI) or Wisconsin Medicaid, which provides critical support to individuals with limited income and resources.
A COLA increase may slightly affect eligibility thresholds for these programs, so it’s important to consult with a lawyer to avoid any unintended reductions in benefits. Even small changes in benefits can impact eligibility for need-based programs, so proactive planning is essential to ensure full access to all available benefits.
3. Tax Implications
While SSDI benefits are not taxable for most people receiving them, those with higher incomes You may need to pay taxes on a portion of your benefits. This can be up to 50% or 85%, depending on your total income and your filing status.
The Internal Revenue Service (IRS) provides clear guidelines for calculating taxable Social Security Disability Income (SSDI) in Publication 915. This publication explains how to determine whether your benefits are subject to federal taxes. Other sources of income, such as wages, self-employment earnings, investments, and pensions, can increase your total income over the tax threshold, resulting in a tax liability.
How Tabak Law Can Help
At Tabak Law, we fight for the rights of disabled individuals in Milwaukee and across the nation. We help them secure the benefits they deserve by providing skilled legal assistance with Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) claims. Our attorneys specialize in helping clients maximize their benefits and ensure they receive full financial support. Whether you’re applying for benefits for the first time or appealing a rejection, we’re committed to turning your struggles into strength.
Don’t navigate the SSDI process alone – let Tabak Law help you. Contact us today for a free case review.