Wednesday, January 25, 2012

What to Expect from the Social Security Agency this Year

This year, recipients would have a lot of good news to expect from the Social Security Agency. Breaking off the records of 2009, recipients see bigger payments this current year. Take a look at some of the great changes to expect from the agency for the next twelve months:

• Higher Monthly Benefits
As announced last year, a 3.6 percent increase of social security income could be expected by the very first month of 2012. It is actually the first increase since 2009. A common beneficiary is expected to receive an increase of $43 per month. The Cost of Living Adjustments which started way back in 1975 have ranged from 14.3 percent in 1980 to zero in 2011.

• Higher Social Security Capacity Tax Capital
The social security capacity tax capital is expecting an increase of $110,100 in 2012 from the $106,000 in 2011. Said increase would be as a result of the nearly 10 million high wage earners paying higher taxes.

• Social Security Tax Holiday – Temporarily Extended
The wage earners’ 2 percent cut in payroll tax was recently extended until the first two months of the current year as amended by the Temporary Payroll Tax Cut Continuation Act of 2011. Instead of paying the usual 6.2 percent of their pay in the social security fund, the approximately 160 million wage earners will continue to pay only 4.2 percent until February 2012.

• Higher Limits on Earnings
Though earning a $480 social security benefit while working and collecting the monthly payment is good news, there is also not-so-bad news associated with the announcement of higher limits on earnings. Here, a part of the recipients’ social security benefit will be temporarily held back. The agency has since provided its own good reason for doing so.

• Benefits to Grow in Maximum Increase
To get a maximum growth in benefits, a wage earner needs to earn the maximum taxable amount every year after reaching the age of twenty-one. A maximum wage earner can expect a growth of $2,513 per month in 2012, up from $2,366 in 2011.

With these aforementioned facts, many beneficiaries filing for social security disability would definitely be glad spreading this news. Through the years, the agency had suffered many ups and downs. This year, a fruitful year is expected by the recipients of Social Security.