$914 Social Security payment: who can claim the monthly check and when is the deadline?
Social Security benefits got a major boost to combat rising prices over the past year. Monthly payments will rise by 8.7% once the 2023 COLA takes effect.
The latest report on inflation in the United States showed the pace of rising prices slowing, that is good news for Americans who have been struggling with a higher cost of living. Fortunately for the roughly 70 million recipients of Social Security benefits the Social Security Administration automatically raises monthly benefits to account for inflation.
In October, a historic cost-of-living adjustment (COLA) increase for 2023 of 8.7 percent was announced which will take effect on payments for the coming month of January and all subsequent payments for the year. This increase will also apply to Supplemental Security Income which benefits over 5 million adults and children who have a disability or blindness and limited financial resources. Likewise, the 2023 COLA will increase the maximum student earned income exclusion amounts. Here’s a look...
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The maximum monthly Supplemental Security Income payments in 2023
Beneficiaries of Supplemental Security Income (SSI) will see their first payments with the increased amounts with the January benefit. That payment will hit bank accounts 30 December 2022 according to the Social Security Administration’s payment schedule.
Eligible individuals will have a new monthly maximum federal amount of $914, an increase of $73 over 2022. The maximum amount for eligible couples will jump $110 to $1,371. And essential individuals can get up to $458 a boost of $37 from last year. The Social Security Administration will be sending letters to recipients about the COLA increase, but those who wish can check their benefit payment online.
Maximum student earned income exclusion amounts
When calculating what a recipient’s monthly SSI benefit will be, the Social Security Administration takes into account different types of income. Not all count against the amount they receive each month and exclusions for certain income is granted.
Only the student earned income exclusion is affected by the annual COLA increase. The exclusion applies to students under the age of 22 who are blind or disabled and who regularly attend school, college, or university as well as those who attend a vocational or technical training course.
The exclusion allows these beneficiaries to have limited earnings without it counting against their monthly maximum federal amount. In 2023 they can have earnings up to $2,220 per month excluded with a total annual exclusion of no more than $8,950.
How is the COLA calculated?
Using a formula detailed in federal law the Social Security Administration takes the CPI-W, a broad government measure of inflation, from the third quarter of the fiscal year, in this case July, August and September 2022, and compare that to the one from previous year. Based on the figures from the previous two CPI-W reports The Senior Citizens League (SCL), an advocacy group had estimated a COLA increase for 2023 of 8.7 percent.
The official announcement of the 2023 COLA came the same day as the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for September 2022 which came in at 8.5 percent. The historic COLA of 8.7 percent, the highest since 1981, came on the back of red-hot inflation which has finally begun to ease but not enough that it is causing hardship for households across the nation.