Monthly Social Security benefits and Supplemental Security Income (SSI) for nearly 64 million Americans will increase 1.7 percent in 2015, the Social Security Administration announced today.
The 1.7 percent cost-of-living adjustment (COLA) will begin with benefits that more than 58 million Social Security beneficiaries receive in January 2015. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2014. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
The Social Security Act provides for how the COLA is calculated. To read more, please visit www.socialsecurity.gov/cola.
Some Individuals will Pay More Social Security Taxes in 2015
Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $118,500 from $117,000. Of the estimated 168 million workers who will pay Social Security taxes in 2015, about 10 million will pay higher taxes because of the increase in the taxable maximum.
Medicare Costs Will Basically Remain the Same in 2015
Details about 2015 Medicare are available at www.medicare.gov . The following is an overview of Medicare costs for 2014 and 2015:
|A Comparison of 2014 and 2015 Medicare Costs|
|Part B premium||Most people pay $104.90 each month.(This amount won’t change in 2015.)|
|Part B deductible||$147 per year. (This amount won’t change in 2015.)|
|Part A premium||Most people don’t pay a monthly premium for Part A. If you buy Part A, you’ll pay up to $426 each month. (Reduced to $407 in 2015.)|
|Part A hospital inpatient deductible|| You pay: