Social Security and Supplemental Security Income (SSI) benefits will increase 3.2% in 2024 for more than 71 million Americans. If you receive either of these benefits, you’ll likely have questions concerning what this means for your monthly benefit and other potential changes. Keep reading for all you need to know about the COLA adjustment for 2024.
How Will This Affect Your Income?
The Social Security Administration estimates that beneficiaries will receive an average of $50 more every month. This income change will begin in January 2024 (or December 29, 2023, for SSI recipients). All claimants should expect to receive notice of their new benefits amount by early December.
What Will the Tax Rate Be in 2024?
The tax rate for employees will stay at 7.6%, the same as in 2023. The self-employed tax rate will also remain unchanged in 2024, at 15.3%. As with previous years, any individual with an income of more than $200,000 annually (or $250,000 if married and filing jointly) will be subject to an additional 0.9% Medicare tax.
Other Changes in 2024
Along with the raise in benefits, some other changes are coming to Social Security payments in 2024.
Maximum Taxable Income
In 2024, the maximum taxable earnings for Social Security will rise to $168,600. This will be up from $160,200 in 2023.
Social Security Disability Thresholds
The disability threshold for non-blind recipients will go up to $1,550 a month in 2024, from $1,470 a month in 2023. For blind recipients, the increase will be from $2,460 a month in 2023 to $2,590 a month in 2024. If you are in a Trial Work Period (TWP), the increase is from $1,050 a month in 2023 to $1,110 a month in 2024.
Maximum Social Security Benefit
If you are a worker retiring at full retirement age, the maximum Social Security benefit will go up to $3,822 a month in 2024. This is an increase of about $200 from 2023, with a maximum of $3,627 monthly.
SSI Federal Payment Standard
In 2024, the standard payment for SSI will be $943 a month for individuals and $1,415 for couples. These numbers are up from 2023, with the standard being $914 for individuals and $1,371 for couples.
Estimated Average Monthly Social Security Benefits Payable in January 2024
What will the average monthly benefits be in 2024? Here’s a breakdown comparison between 2023 and 2024 for various situations:
Before 3.2 percent COLA (2023)
- All retired workers: $1,848
- Aged couple, both receiving benefits: $2,939
- Widowed mother and two children: $3,540
- Aged widow(er) alone: $1,718
- Disabled worker, spouse, and one or more children: $2,636
- All disabled workers: $1,489
After 3.2 percent COLA (2024)
- All retired workers: $1,907 ($59 increase)
- Aged couple, both receiving benefits: $3,033 ($94 increase)
- Widowed mother and two children: $3,653 ($113 increase)
- Aged widow(er) alone: $1,773 ($55 increase)
- Disabled worker, spouse, and one or more children: $2,720 ($84 increase)
- All disabled workers: $1,537 ($48 increase)
Questions? Let Cervoni Disability Law Help
If you’ve recently become disabled and don’t know how to proceed with an SSDI claim, call Cervoni Disability Law, PLLC. We’ll do our best to ensure you get the benefits you need with the care and respect you deserve.
