Stop! Do You Know Your 2019 Social Security Benefits?
The new year is here, and with it comes a surprisingly positive 2019 social security shift.
As is routine with every year, the Social Security Administration (SSA) announces changes it makes and puts them into effect in January of the following year. Well, let us from SSDA USA go over the 2019 social security shift and what changes could be in store for you.
1. Cost of Living Adjustment Increase
Every year, the SSA has to adjust Social Security recipients’ benefits for the annual Cost of Living Adjustments. The SSA has been pretty stingy in the past few years, but 2019 may be different. For 2019, the COLA increase is 2.8%. This may not seem like much money, but it is a noticeable difference. This means that the average recipient will receive $40 more each month. Again, this may not seem like much, but the dollars quickly add up, and any increase, however small, is always welcome.
2. Taxable Earnings Increase
For 2019, the maximum taxable earnings are now $132,900, a $4,500 increase from $128,400. This means that, for example, if you earn $150,000 a year, you must pay Social Security taxes for $132,000. In addition, because of this change, the maximum Social Security tax an employee can pay is now $8,239.80, a $270 increase from $7,960.80.
3. Rise in Maximum Social Security Benefit
The maximum Social Security benefit for 2019 is $2,861 per month, which is $73 more than the 2018 maximum benefit. Of course, this maximum benefit can increase if the recipient delays benefits until after full retirement age. If you wait all the way until age 70, for instance, your benefits would start at $3,776.52 plus any COLA adjustments.
4. Rise in Earnings Test Limits
Beneficiaries will be able to earn more money in 2019 without their benefits being negatively affected. If you turn 66 in 2019, you can earn $3,910 a month (a $130 increase from 2018) without your benefits being negatively affected. If you turn 66 after 2019, you can earn $1,470 a month (a $50 increase from 2018) without your benefits being negatively affected. For people turning 66 in 2019, $1 from every $3 in excess earnings will be withheld. For people turning 66 after 2019 but are still claiming benefits, $1 from every $2 in excess earnings will be withheld.
5. Social Security Work Credits Cost Increase
Before you can receive your Social Security Disability Insurance (SSDI) or your Social Security retirement benefits, you need a certain amount of Social Security work credits. The number of credits required for SSDI varies person to person, but for retirement, the number of required credits is 40. One work credit is earned for every $1,360, a $40 increase from 2018. In addition, you can only earn 4 work credits per year, which means to get maximum credits, you must earn $5,440 per year.
Have Questions about the 2019 Social Security Shift?
If you have any questions about Social Security, contact a Social Security Disability Advocate today! Our SSDA USA employees work day and night to address all your Social Security concerns. You can contact us anytime by calling us at 602-952-3200. Alternatively, you can contact us online and check out our LiveChat feature on our website. Don’t keep your questions bottled up, call SSDA USA today!
This is attorney advertising. SSDA, LLC is a group of attorneys that pursues claims for Social Security Disability benefits on behalf of its clients against the Social Security Administration. SSDA, LLC is in no way a part of the Social Security Administration. Further, the information on this blog is for general information purposes only. Nothing herein should be taken as legal advice. This information is not intended to create, and receipt or viewing does not constitute, a representative-client relationship.
