NEW Social Security Update! | SSI, SSDI Payment Increase & Schedule in May

I wanted to get into some discussion on Social Security, SSI, and SSDI benefits, and on the increase in benefits coming in the month of May. Now as you know, the next round of normal Social Security checks are due to go out in early May. Approximately 64 million Social Security beneficiaries are seeing the largest cost-of-living adjustment increase in nearly 40 years, at a rate of 5.9% in 2022. This increase went into effect on January 1st for Social Security beneficiaries and December 30th, 2021 for Supplemental Security Income beneficiaries. COLA increases are usually not this large, but the annual inflation rate in the U.S. is on the rise, accelerating to 8.5% in March, and has the potential to edge even higher.

As for the May Social Security schedule: if your birth date falls between the 1st-10th of the month, your payment will be distributed on Wednesday, May 11th. If your birth date falls between the 11th-20th, your payment will be distributed on Wednesday, May 18th. And lastly, if your birth date falls between the 21st-31st, your payment will be distributed on Wednesday, May 25th. The full 2022 schedule for benefits payments can be found on the Social Security Administration’s schedule at the link shown below in the description. As for my lovely SSI beneficiaries, you may qualify for SSI if your monthly Social Security benefits aren’t enough to cover basic expenses. As you’re probably already aware, the SSI program sends monthly payments to adults and children who are blind or have another disability, who also meet the financial qualifications.

Additionally, SSI is available to those 65 years and older who have limited income and financial resources. Now if you received Social Security before May 1997, or if you’re receiving both Social Security and SSI, then you will be receiving your Social Security payment on May 3rd. Keep in mind, you can easily check on your benefit payments and Social Security statements by creating a My Social Security account at their website. And through your online account, you can check the status of an application, estimate future benefits, manage the benefits you already receive and monitor them for potential increases from new bills passed by the US government. All of that will be conveniently available in one place on your account.

In other news, House Democrats are proposing a new tax bill that would eliminate taxes on social security income for those earning less than $75,000 a year. Minnesota, for instance, is one of just 12 states that currently taxes social security benefits. And Republicans have long led the charge to repeal that tax. While Democrats have traditionally argued that the social security tax only hits high income individuals, a Minnesota House Research study indicates that’s actually not the case. The study found that 62% of Minnesotans filing taxes do in fact, pay taxes on social security income. The study also found that couples earning $58,000 or more were paying taxes on their benefits. So in fact, the Social Security tax has quite a significant impact on the finances of the average Social Security recipient, regardless of income or status.

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