Social Security Benefits Rising
That’s right—a free IRS efile is looking pretty good this coming up tax time. Do you know why? According to the reliable reports gotten, it is now clear that all senior workers that are receiving Social Security retirement benefits will starts getting a 3.6 percent cost of living adjustment by the year 2012. This is their first increment since 2009 according to the report. This move promises to start putting smiles on the faces of those that are concerned about this development because of the benefits they are going to be getting from the action on the longer run.
David Certner (legislative policy director with AAR) said that “This is a way of making things easier for the people, with large records of lost savings and pensions, higher health care costs, lower home values and near-to-zero returns on money market funds or stable value funds”. He states further that this development means that “$500 is going to be some welcome relief”.
Now that this has happened, it means that the maximum annual income subjected to the Social Security tax will also increase in rate as from the next year to $110,100 from the initial $106,800 which hasn’t change since the past three years.
There was no increase in earning last year and a year before last year which is 2009, until this year.
It seems that some seniors won’t experience the full 3.6 % increase in their monthly benefits due to the reason that it will be offset by higher Medicare Part B premiums. During last year and this year , people who have Medicare premiums removed from their social security got no increase in their part B premiums because of harmless hold provision.
During 2010 and 2011, people who have Medicare premius deducted from their Social Security payment saw no increase in their Part B premiums because of the hold harmless provision.
If you want to learn more about this article, you can read the full article from this link. What do you have to say concerning this information? Is this a right move, I guess you know right but, what are the better ways this action can take to affect lives positively? Let’s rob mind and share our opinions below. Thanks a lot