Social Security Announces Benefit Changes for 2012

The Social Security Administration (SSA) recently announced cost of living (COLA) and other changes for its disability program, beginning January 1, 2012.

Based on the increase in the Consumer Price Index, Social Security and Supplemental Security Income (SSI) recipients will receive a 3.6% increase in benefits in 2012.

The maximum taxable earnings increases to $110,100, up from $106,800 in 2011.

The first $14,640 in 2012 earnings for retirees under the full retirement age are exempt from taxes.  (One dollar in benefits will be withheld for every $2 earnings above the limit.)  The first $38,880 in earnings are exempt from taxes in the year you reach full retirement age.  (One dollar in benefits will be withheld for every $3 earnings above the limit.)  There is no limit on earnings beginning the month you attain full retirement age.

The Federal SSI payment for 2012 will be $698/month.  The SSI resources limit remains at $2,000.

Other information can be obtained by visit your local Social Security Administration office or visiting the agency’s website.  If you have questions regarding Social Security Disability Insurance Benefits (SSDIB) or Supplemental Security Income (SSI), please contact our office.


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