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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72" style='word-wrap:break-word'><div class=WordSection1><p class=MsoPlainText>Social Security Announces 8.7 Percent Cost-of-Living Adjustment for 2023<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>by NFB Advocacy and Policy Department<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>It's that time of year again when we provide you with information regarding annual adjustments to the Social Security Disability Insurance (SSDI) and Supplemental<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Security Income (SSI) programs. In 2023, approximately seventy million Americans will see an 8.7 percent cost-of-living adjustment (COLA) increase in their<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>benefit amounts. Thus, come January, monthly checks will be higher.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>The 2023 amounts are below, along with some general concepts pertaining to the Social Security and Medicare programs, in case you want to better understand<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>or refresh yourself about your rights. The COLA (if any) is based on the consumer price index (CPI-W), which measures the rate of inflation against the<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>wages earned by the approximately 173 million workers across the nation over the previous four quarters starting with the third quarter of the previous<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>year.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Tax Rates<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>FICA and Self-Employment Tax Rates: If you are employed, you know that you do not bring home everything you earn. For example, 7.65 percent of your pay<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>is deducted to cover your contribution to the Old Age, Survivors, and Disability Insurance (OASDI) Trust Funds and the Medicare Hospital Insurance<o:p></o:p></p><p class=MsoPlainText>(HI)<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Trust Funds, 6.20 percent covers OASDI, and 1.45 percent is contributed to the HI Trust Funds. Additionally, your employer is required to match this<o:p></o:p></p><p class=MsoPlainText>7.65<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>percent for a total of 15.30 percent. <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>For those who are self-employed, there is no "employer" to match the 7.65 percent, which means a self-employed individual pays the entire 15.30 percent<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>of their income. These numbers will not change in 2023 regardless of whether an individual is employed or self-employed. As of January 2023, individuals<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes; this does not include<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>the above amounts.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Maximum Taxable Earnings<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>There is a ceiling on taxable earnings for the OASDI Trust Fund, which was<o:p></o:p></p><p class=MsoPlainText>$147,000 in 2022 and will increase to $160,200 in 2023. Thus, for earnings above<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>$160,200, there is no 6.20 percent deducted for OASDI. As for Medicare, there is no limit on taxable earnings for the HI Trust Fund.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Social Security Disability Insurance (SSDI) Quarters of Coverage<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>The OASDI Trust Fund is kind of like an insurance policy. You have to pay a premium to participate. Therefore, to qualify for Retirement, Survivors, or<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Disability Insurance benefits, an individual must pay a minimum amount of FICA taxes into the OASDI Trust Fund by earning a sufficient number of calendar<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>quarters to become fully insured for Social Security benefits.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>In 2022, credit for one quarter of coverage was awarded for any individual who earned at least $1,510 during the year, which means that an individual would<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>need to earn at least $6,040 to be credited with four quarters of coverage.<o:p></o:p></p><p class=MsoPlainText>In 2023, the amount increases to $1,640 for one calendar quarter or $6,560<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>to earn four quarters of coverage for the year.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>A maximum of four quarters can be awarded for any calendar year, and it makes no difference when the income is earned during that year. Basically, the<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>taxes you pay into the OASDI and HI Trust Funds are your premiums to take part in the Social Security and Medicare programs. The total number of quarters<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>required to be eligible for benefits depends on the individual's age. The older the individual, the more quarters are required. Furthermore, a higher average<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>income during an individual's lifetime means a higher Social Security or SSDI check when benefits start. Remember the above quoted numbers for quarters<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>of coverage to become fully insured are only minimum amounts. <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Trial Work Period (TWP)<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>This concept is often misunderstood. The amount of earnings required to use a trial work month is not based on the earnings limit for blind beneficiaries<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>but instead on the national average wage index. In 2022, the amount required to use a TWP month was only $970, and this amount will increase to $1,050<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>in 2023. <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>If you are self-employed, you can also use a trial work month if you work more than eighty hours in your business, and this limitation will not change<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>unless expressly adjusted.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Substantial Gainful Activity (SGA)<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>The earnings limit for a blind beneficiary in 2022 was $2,260 per month and will increase to $2,460 in 2023. Again, it's important to remember this is<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>not the amount of money an individual makes to use a trial month. This is to say that the TWP can be exhausted even if your income is well below $2,460<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>per month. See the above information about the TWP.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>In 2023 a blind SSDI beneficiary who earns $2,460 or more in a month (before taxes but after subtracting un-incurred business expenses for the self-employed,<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>subsidized income for the employed, and impairment-related work expenses) will be deemed to have exceeded SGA and will likely no longer be eligible for<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>SSDI benefits.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Supplemental Security Income (SSI)<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>The federal payment amount for individuals receiving SSI was $841 in 2022 and will increase to $914 in 2023. For married couples, the federal monthly payment<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>amount of SSI will increase from $1,261 to $1,371.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Student Earned Income Exclusion<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>In 2022, the monthly amount was $2,041 and will increase to $2,220 in 2023.<o:p></o:p></p><p class=MsoPlainText>The annual amount was $8,231 in 2022 and will be $8,950 in 2023. The asset<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>limits under the SSI program will remain unchanged at $2,000 per individual and $3,000 per married couple.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>ABLE Act<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>Signed on December 19, 2014, the ABLE Act has a significant impact on resource limits associated with the SSI and Medicaid programs for those who were<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>blind or disabled by the age of twenty-six. Traditionally, SSI beneficiaries have been required to adhere to strict resource limits: such as a maximum<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>of $2,000 in the bank for an individual receiving SSI benefits. Under the ABLE Act, however, the amount deposited in an ABLE Account can be much higher.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>ABLE Account contributions must be designated specifically for purposes such as education, housing (with a cautionary warning to follow), employment training<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>and support, assistive technology, health, prevention and wellness, financial management, legal fees, and funeral and burial expenses. The required implementing<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>regulations are being enacted in most states. Check with your financial institution of choice for a status of ABLE Act regulations in a specific state<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>and to see if an ABLE account is right for you.<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText> <o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>As to the warning about ABLE Account contributions for housing, it is important to note that SSI beneficiaries may still face the traditional<o:p></o:p></p><p class=MsoPlainText>$2,000 resource<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoPlainText>limit for ABLE Account funds designated for housing. Thus, SSI beneficiaries should consider the many other purposes not subject to the traditional resource<o:p></o:p></p><p class=MsoPlainText><o:p> </o:p></p><p class=MsoNormal>limits when making ABLE Account contributions, since there are also tax advantages associated with ABLE accounts.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Do you have a smart phone, tablet ETC! How would you like to be able to look at your calendar on your phone for upcoming events for the NFB of SC? Are if you are at your desk and wondering do I have any events scheduled today for the NFB of SC? Well, we have something that you will really like! Below is a link to the NFB of SC Google Calendar that you can subscribe to for upcoming events without having to visit our fabulous NFB of SC website to check the Events Calendar. Below is the link in which you will need to subscribe to the Events Calendar on your smart phone or computer. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><a href="https://calendar.google.com/calendar/ical/nfbsouthcarolina%40gmail.com/private-4df60c862f41a1d9bf2e25ed4a6af1f2/basic.ics"><span style='color:blue'>https://calendar.google.com/calendar/ical/nfbsouthcarolina%40gmail.com/private-4df60c862f41a1d9bf2e25ed4a6af1f2/basic.ics</span></a><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>