Social Security Administration Announces 2021 Cost-of-Living Adjustment
Effective December 31, 2020, Social Security beneficiaries will receive a 1.3 percent increase in their benefits. According to the latest statistics, nearly 64 million Americans currently receive Social Security and Supplemental Security benefits. The cost-of-living adjustment (COLA) is based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2019 through the third quarter of 2020.
Other changes taking effect in 2021 include an increase in what constitutes substantial gainful activity (SGA). The current SGA amount for non-blind beneficiaries will increase from $1,260.00 per month to $1,310.00 per month in 2021. For blind beneficiaries, SGA will be $2,190.00 per month, up from $2,110.00 per month. The trial work period (TWP) amount has been raised to $940.00 per month, an increase from the current $910.00 per month.
Due to a rise in average wages, the maximum amount of earnings subject to the Social Security tax has also increased. In 2021, the taxable maximum will increase from $137,700.00 to $142,800.00. According to the Social Security Administration, nearly 10 million people will pay higher taxes as a result of this increase.
If you are in the process of applying for Social Security disability benefits, contact the team of experienced Social Security attorneys at Rob Levine & Associates. We can help you get the benefits you deserve.