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Social Security Administration Announces 2007 Cost-Of-Living Adjustments

The Social Security Administration has announced cost-of-Living Adjustments for 2007. The information below is from the Social Security Administration Web site.

Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2005 through the third quarter of 2006, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 3.3 percent COLA for 2007. Other important 2007 Social Security information is as follows:
Tax Rate
2006
2007
Employee
7.65%
7.65%
Self-Employed
15.30%
15.30%
NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings.
Maximum Earnings Taxable:
2006
2007
Social Security (OASDI only)
$94,200
$97,500
Medicare (HI only)
No Limit
Quarter of Coverage:
2006
2007
$ 970
$1,000
Retirement Earnings Test Exempt Amounts:
2006
2007
Under full retirement age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
$12,480/yr.
($1,040/mo.)
$12,960/yr.
($1,080/mo.)
The year an individual reaches full retirement age
NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.
$33,240/yr.
($2,770/mo.)
$34,440/yr.
($2,870/mo.)
There is no limit on earnings beginning the month an individual attains full retirement age (65 and 8 months for retirees born in 1941; 65 and 10 months for those born in 1942).
Social Security Disability Thresholds:
2006
2007
Substantial Gainful Activity (SGA)
Non-Blind
$  860/mo.
$  900/mo.
Blind
$1,450/mo.
$1,500/mo.
Trial Work Period (TWP)
$  620/mo.
$  640/mo.
Maximum Social Security Benefit:
Worker Retiring at Full Retirement Age in
2006
2007
NOTE: For retirees born in 1941, full retirement age is 65 and 8 months; for those born in 1942, it is 65 and 10 months. Full retirement age will gradually increase to age 67 for those born in 1960 and later.
$2,053/mo.
(Age 65 and 8 months)
$2,116/mo.
(Age 65 and 10 months)
SSI Federal Payment Standard:
2006
2007
Individual
$ 603/mo.
$ 623/mo.
Couple
$ 904/mo.
$ 934/mo.
SSI Resources Limits:
2006
2007
Individual
$2,000
$2,000
Couple
$3,000
$3,000
SSI Student Exclusion Limits:
2006
2007
Monthly Limit
$1,460
$1,510
Annual Limit
$5,910
$6,100
Estimated Average Monthly Social Security Benefits Payable in January 2007:
Before
3.3% COLA
After
3.3% COLA
All Retired Workers
$1,011
$1,044
Aged Couple, Both Receiving Benefits
$1,658
$1,713
Widowed Mother and Two Children
$2,098
$2,167
Aged Widow(er) Alone
$  976
$1,008
Disabled Worker, Spouse and One or More Children
$1,593
$1,646
All Disabled Workers
$  947
$  979

Bob Kraft

I am a Dallas, Texas lawyer who has had the privilege of helping thousands of clients since 1971 in the areas of Personal Injury law and Social Security Disability.

About This Blog

The title of this blog reflects my attitude toward those government agencies and insurance companies that routinely mistreat injured or disabled people. As a Dallas, Texas lawyer, I've spent more than 45 years trying to help those poor folk, and I have been frustrated daily by the actions of the people on the other side of their claims. (Sorry if I offended you...)

If you find this type of information interesting or helpful, please visit my law firm's main website at KraftLaw.com. You will find many more articles and links. Thank you for your time.

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