24/12/2025
Just a heads up guys... the cost of living raise information...
Social Security beneficiaries will experience several critical changes starting in January 2026, including a cost-of-living increase and significant updates to tax deductions and Medicare premiums.
Benefit and Earnings Changes for 2026
Cost-of-Living Adjustment (COLA): Benefits will increase by 2.8%. For the average retired worker, this translates to an estimated monthly increase of $56, raising the average check from $2,015 to $2,071.
Maximum Benefit: The maximum monthly benefit for a worker retiring at full retirement age will increase to $4,152 (up from $4,018 in 2025).
SSI Payments: Supplemental Security Income (SSI) payments will also rise by 2.8%, with the first increased payments scheduled for December 31, 2025.
Earnings Limits: If you work while receiving benefits before reaching full retirement age, you can earn up to $24,480 annually before benefits are temporarily withheld.
Tax and Deduction Updates
New Senior Deduction: Eligible taxpayers aged 65 and older can claim a new $6,000 deduction ($12,000 for couples if both qualify) for the 2026 tax year, enacted under the "One Big Beautiful Bill". This deduction phases out for individuals earning over $75,000.
Taxable Wage Cap: The maximum amount of earnings subject to Social Security payroll tax will rise to $184,500 from the 2025 limit of $176,100.
Standard Deduction: The general standard deduction is also increasing to $15,750 for single filers and $31,500 for married couples filing jointly.
Medicare Impacts
Part B Premiums: The monthly base premium for Medicare Part B is projected to rise nearly 10% to $202.90. Because these premiums are often deducted directly from Social Security checks, this increase may offset roughly $17.90 of the monthly COLA raise for many beneficiaries.
Beneficiaries can view their specific 2026 benefit amounts by signing into their personal my Social Security account.
If there is any questions, please feel free to give me a call.