The Social Security Administration has recently released its list of 2020 Social Security changes. We’d like to share some of the details with our readers who will be receiving or expect to receive retirement benefits, supplemental income benefits or disability benefits in 2020.
Cost of Living Adjustment (COLA)
To keep up with inflation, there’s a cost of living adjustment (COLA) made to Social Security benefits. For 2020, the COLA is 1.6 percent. Starting in 2020, the estimated average monthly Social Security Benefits Payable will be:
- $1,503 for all retired workers;
- $2,531 for an aged couple who both receiving benefits;
- $2,934 for a widowed mother and two children;
- $1,422 for an aged widow who lives alone;
- $2,176 disabled worker, spouse and one or more children;
- $1,258 for all disabled workers.
The maximum Social Security benefits that a worker retiring at full retirement age can receive will rise to $3,011 a month in 2020.
For those on Social Supplemental Income (SSI), their new monthly SSI benefits in 2020 will be:
- $783 for individual benefits
- $1,175 for couples
SSI resource limits — $2,000 a month for individuals and $3,000 a month for couples — will remain the same.
Changes in Social Security Disability Benefits in 2020
If you are receiving Social Security disability benefits, the amount of money you can earn through Substantial Gainful Activity (SGA) per month, without seeing a reduction of benefits, increases to $1,260 a month for non-blind recipients and $2,110 for those who are blind. If you’re starting a Trial Work Period (TWP) the maximum amount will be $910 a month.
Earn More without Having Your Benefits Reduced
If you collect Social Security and continue to work, you probably know there’s a limit to how much you can earn a year before the SSA begins reducing the amount of benefits you receive. One dollar in benefits is withheld for every $2 in earnings above the limit.
In 2020, you’ll be able to earn more without having to worry about your benefits withheld: $18,240 a year ($1,520 a month) for those who haven’t quite reached full retirement age and $48,600 a year ($4,050 a month) for those who have.
Increase in Maximum Taxable Earnings
The maximum amount of earnings subject to Social Security tax will go from $132,900 to $137,700 a year in 2020.
Student Earned Income Exclusion (SEIE) Recipients Will Be Able to Earn More
The SEIE is an SSI work incentive that allows qualified recipients who are under the age of 22 and attend school to earn a certain amount of income without losing their benefits. The maximum income a student with a SEIE can earn in 2020 will be $1,900 a month or $7,670 a year.
Social Security Work Credits Will Cost More To Earn
In order to qualify for Social Security benefits, a recipient must earn a certain number of Social Security credits. Forty is the minimum number in most cases. One work credit is equal to three months of Social Security benefits. The amount required to earn a credit will go up from $1,360 to $1,410 in 2020.
Marc Whitehead Are Here to Help You In 2020
The Houston disability attorneys at Marc Whitehead and Associates are dedicated to helping persons who are rightfully due disability benefits from the Social Security Administration, Veterans Administration or private insurance companies.
If your claim for disability benefits has been unfairly denied, reach out to Marc Whitehead and Associates without delay to schedule a free initial consultation with one of our highly experienced Social Security disability attorneys. We are headquartered in Houston, TX but serve clients all over the U.S.