Some beneficiaries of Social Security are likely to see their tax payments increase in 2024 as a result of inflation-driven increases to their benefits, according to a report by CBS News.
Every year, the amount of money paid to a Social Security beneficiary increases to account for inflation, known as cost-of-living allowance (COLA). In 2024, the COLA is set to increase all benefits by 3.2%, which will place some Americans in a higher tax bracket and, hence, lead to them paying more taxes than previously, CBS reported.
“There is a wide misperception, and it’s not helped by social media at all, that Social Security recipients don’t pay taxes, and that’s not at all the case,” said Mary Johnson, a policy analyst for Social Security and Medicare at the Senior Citizens League to CBS News. “We are dealing with the tax side of inflation here, and inflation can drive up your taxes.”
Today’s 3.2% #COLA announcement is welcome news, but Social Security benefits haven’t kept pace with the everyday costs that seniors face. After decades of inaction, now is the time to enhance benefits & improve the COLA by passing Social Security 2100! pic.twitter.com/R4rneWg9EV
— Rep. John Larson (@RepJohnLarson) October 12, 2023
In 2024, beneficiaries who receive between $25,000 to $34,000 a year will have income tax on up to 50% of the benefits, while recipients of over $34,000 will have 85% of their benefits being taxable, CBS reported.
The ranges differ for joint filers of income tax, such as two elderly spouses, whose equivalent ranges are $32,000 to $44,000 for a 50% tax rate and above $44,000 for an 85% tax rate, respectively.
Inflation will also affect non-beneficiaries whose payroll taxes currently fund the program. The top threshold for earnings subject to the tax will rise to $168,600, an increase of $8,400, at a tax rate of 6.2%, CBS reported.
The COLA will increase some beneficiaries’ payments to a significant amount, with the top earners of Social Security receiving up to $5,000 in monthly payments. However, because these beneficiaries paid the maximum over their lifetimes, they are generally likely to be wealthy and non-reliant on Social Security payments.
“The only way to get it is if you’re [Apple CEO] Tim Cook and you have been paying the maximum” into your payroll taxes, she joked. “It’s like the 1% to 2%.”
On average, the monthly benefit paid to beneficiaries will rise to $1,907 per month in 2024 from $1,848 in 2023.
Utterly B:S The Biden Administration has sent our tax moniy to Ukraine, and a lot of that was to pay for Teachers salery and Retirement payments, new cars and homes for those in Ukraine. Tax us heavy to give it to another country?
Yes and don,t think they don’t get their % back in hidden laundry. Only a fool can’t see it. That’s also a fact. When you have a government that loses funding, and doesnt have a plan or budget. You have theft by deception against American paying tax citizens. They are Rogue as hell people come on. See it for what it is. Oh’ the blindness of multitudes. I hope I die real soon. But I pray I get to bring arms against them before I do. LIVE FREE or Die! Radical as this may sound it’s more sane than what they do to people daily. Federal Government are abusers and users of Americans. High Treasonist crimes committed for 3 years straight, and these crimminals are targeted for 2025. They will reap the deception they’ve sewn. In Gods name they will be held accountable, in the name of the Holy Ghost! Unaccounted for trillions of dollars. It just doesnt exist on paper or hard drives any where. And they know they can’t prove it. But they want you still to pay their debt that they are accountable for. Higher taxes.. W in the T’ Total Hell is a Democrat good for? To punish Humans for their greater good SOCIALIST SOCIETY OF ELITE DEMON GARBAGE! THIS IS TRUE. NO WAY THEY CAN BLOW IT OFF. ITS BEEN PROVEN LONG AGO. Go watch Klaus Slobb, George Soros, Bill Gates, just to name and identify a few!
All true BUT who lets them get away with it? Who keeps re-electing them?
The real problem is uninformed, uneducated voters.
90 percent of it is rigged elections!
If the IRS AND the FEDERAL TREASURY HADN’T, BEEN OVER TAXING FOR THESE LIFETIMERS, THERE WOULD BE WEALTH FOR ALL. DOESN’T TAKE A ROCKET SCIENTIST TO SEE WHY THESE ASS SITTERS ARE RICH AND DECEPTIVE. THEY HAVE BEEN OVERTHROWN BEFORE, AND THEY CAN EXPECT A SECOND RUN OF IT IN 2025. AND ITS GONA BE PAINFUL AS HELL. UNLIKE THE FIRST REVOLUTIONARY REBELLION.
I don’t think we should have to pay any kind of taxes on social security checks no matter what the amount is. Property tax shouldn’t apply after you got your home paid for either. I guess I am dreaming!!!!
YES! My wife received a whopping $6 and change as a Social Security increase. This is nothing compared to the increase in food and utilities!