Cost-of-Living Adjustment (COLA) Information for 2020
The 1.6 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 63 million Social Security beneficiaries in January 2020. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2019. (Note: some people receive both Social Security and SSI benefits)
Read more about the Social Security Cost-of-Living adjustment for 2020.
The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $137,700.
The earnings limit for workers who are younger than “full” retirement age (age 66 for people born in 1943 through 1954) will increase to $18,240. (We deduct $1 from benefits for each $2 earned over $18,240.)
The earnings limit for people turning 66 in 2020 will increase to $48,600. (We deduct $1 from benefits for each $3 earned over $48,600 until the month the worker turns age 66.)
There is no limit on earnings for workers who are “full” retirement age or older for the entire year.
Read more about the COLA, tax, benefit and earning amounts for 2020. (2020 Fact Sheet PDF)
The Q&A for the month:
Question: I have a wife who was a homemaker and has only 30 credits for Medicare Part A. She is 3 years older than her husband. The husband does have the necessary 40 credits for Medicare Part A. When the wife files for Medicare at age 65, the husband will be age 62 and not receiving Social Security benefits. Will the wife receive her Medicare part A for free or have to pay the $437 monthly premium?
Answer: Wife qualifies for premium free Medicare based on her husband’s work record. Husband only needs to attain age 62 for her to be eligible and he does not have to file. See policy link for details: https://secure.ssa.gov/apps10/poms.nsf/lnx/0600801008
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