2023 Social Security Changes
Barry Weller
by Barry L Weller, EA
Every year, adjustments are made to the Social Security and Medicare programs for changes in the Consumer Price Index and legislation. For 2023 some of those changes include…
The cost-of-living adjustment (COLA) for Social Security benefits will increase 8.7% in 2023. More than 65 million individuals receive Social Security benefits and will see an average of $140 more per month starting in January 2023.
The standard Medicare part B premium is decreasing $5.20 per month from $170.10 in 2022 to $164.90 in 2023.
If you take insulin, plans can’t charge your more than $35 for a one-month supply and they can’t charge you a deductible for insulin.
For those still working, the Social Security Administration will also be raising the maximum amount of earnings subject to Social Security Tax. The taxable maximum will go from $147,000 in 2022 to $160,200 in 2023. The tax rate on those earnings is 12.4% (6.2% tax paid by the employee through payroll deductions and 6.2% tax imposed on the employer)
The Medicare taxable wages remain on all wages with no maximum wage base limit. The tax rate is 1.45% for the employee and 1.45% for the employer for a total of 2.9%.
Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. If you have not received your letter with your new benefit amount, you can access your personal “my Social Security” account online at www.ssa.gov/myaccount
Barry L Weller, EA is the president of Barry Weller & Associates, Inc. with offices at 19 N Reading Ave, Boyertown, PA 19512 Phone (610) 367-8280 He is an enrolled agent, licensed to represent taxpayers before the IRS.