Each new year that begins United States citizens may see changes to all Social Security checks. These changes are, for the most part, good news. However, there are times when we are faced with some bad news that we have to deal with.
If we keep this in mind we can say that in 2024 we are in for two changes and one of them is negative. This negative change can make the positive change disappear or turn into something bad.
Still, it is true that this change will not affect all Americans collecting a Social Security benefit. It will only affect groups of retirees with a large benefit. Americans with the smallest benefits will not have this negative part.
What we do need to do is to always pay attention to these types of changes. Having changes in each year means that we must take a good look at all these changes. And the fact is that Social Security can be very changeable once a year, even if during the rest of the time it does not make changes of any kind.
2 SOCIAL SECURITY CHANGES IN 2024
These two changes are very important. The first one will affect each and every United States citizen. The second one these changes will only affect a small group of citizens and will depend on a certain situation.
These are the two changes we will see starting in 2024 to Social Security checks and their beneficiaries:
- COLA increase. Thanks to the COLA, Americans will see a larger check starting in January 2024. This change is 3.2%, according to experts. It won’t be as big an increase as in 2023, but it will be enough for the second change to take place.
- Social Security taxes. Taxes are a fundamental and mandatory thing. However, it is true that many Americans with a retirement check do not pay taxes. But since the threshold for this minimum income before paying taxes has not changed, it is possible that with the COLA increase some will have to pay taxes that they did not pay before.
In short, the COLA increase may in some cases result in some retirees getting less money each month. If a retiree starts collecting more money from Social Security than he or she can earn before taxes, he or she will have to pay taxes that he or she did not pay before.