Social Security Disability Insurance or SSDI is an important system in America that ensures that people who lose the ability to work do not lose the ability to survive financially. SSDI often changes subtly from year to year either as a result of policy changes or due to built-in automatic changes. With all that said, what is changing in SSDI for 2023? Tabak Law has answers for you.
Cost of Living Adjustment Increase
This is the news that everyone is the most excited about. The cost of living adjustment or COLA is getting the highest increase in decades at 8.7%. In other words, your Social Security checks will increase by 8.7%. This change actually applies to both Social Security retirement and Social Security Disability Insurance. Recent policy changes mean that this same COLA percentage will also affect veterans’ benefits payments in a similar fashion.
This increase is largely due to the recent inflation. It’s actually an annual increase that can be as low as 0% but can never be negative. It’s decided based on the status of the economy as determined by specific consumer price indexes. Along with this increase, some other things are increasing or changing as well for 2023, though once again, these are largely automatic and not the results of changes in policy.
Read More: Official 2023 SSDI Increase
Maximum Social Security Benefit is Increasing
With the 8.7% increase, the maximum Social Security benefit will also increase. Previously, in 2022, the maximum benefit amount was $3,345 and in 2023 that number will increase to $3,627. Remember, this is the maximum amount and not necessarily the amount you would earn of SSDI or even under full retirement. Your actual Social Security earnings would take into account your previous pay.
Taxable Earnings Are Increasing
In 2022, only your first $147,000 of annual income are taxed at a rate of 6.2%. In 2023, the percentage is staying the same, but the taxable income level is increasing to $160,200. This will not be a change for most people unless they earn more than $147,000 per year. Instead of being based on the COLA, this change is based on an average increase in wages in the U.S.
Medicare Premiums Are Going Down
Though not directly related to SSDI, most SSDI recipients are relying on Medicare. If that’s you, you will be pleased to learn that your premiums will go down from $170.22 in 2022 to $164.90 in 2023. It’s a small relief to be sure, but it still amounts to a little over $60 per year.
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Get Legal Help Applying For SSDI
Tabak Law has the legal expertise you want on your side when applying for Social Security disability insurance benefits. Not only can we potentially help with the application process, but we can also assist if you have already been denied. Reach out to us today for a free case review today!
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