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Social Security Administration Announces 2008 Cost Of Living Adjustment

The Social Security Administration has announced the COLA for 2008. It will be 2.3%, down from the 3.3% COLA for 2007. The following information is from NOSSCR, and the chart below is from the Social Security Administration.

Title II beneficiaries will see the 2.3% increase effective with December benefit payments received in January 2008. SSI beneficiaries will see the increase in their January 2008 payments, received on December 31, 2007.

In 2008, the average monthly Title II benefit for disabled workers will be $1004, and for a disabled worker spouse and one or more children, the average monthly benefit will be $1690. The average benefit for a retired worker will be $1079.

Tax Rate
2007
2008
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 Taxable Earnings:
2007
2008
Social Security (OASDI only)
$97,500
$102,000
Medicare (HI only)
No Limit

 

Quarter of Coverage:
2007
2008
$1,000
$1,050

 

Retirement Earnings Test Exempt Amounts:
2007
2008
Under full retirement age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
$12,960/yr.
($1,080/mo.)
$13,560/yr.
($1,130/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.
$34,440/yr.
($2,870/mo.)
$36,120/yr.
($3,010/mo.)
There is no limit on earnings beginning the month an individual attains full retirement age.
Social Security Disability Thresholds:
2007
2008
Substantial Gainful Activity (SGA)
Non-Blind
$  900/mo.
$  940/mo.
Blind
$1,500/mo.
$1,570/mo.
Trial Work Period (TWP)
$  640/mo.
$  670/mo.

 

Maximum Social Security Benefit:
Worker Retiring at Full Retirement Age
2007
2008
$2,116/mo.
$2,185/mo.

 

SSI Federal Payment Standard:
2007
2008
Individual
$ 623/mo.
$ 637/mo.
Couple
$ 934/mo.
$ 956/mo.

 

SSI Resources Limits:
2007
2008
Individual
$2,000
$2,000
Couple
$3,000
$3,000

 

SSI Student Exclusion Limits:
2007
2008
Monthly Limit
$1,510
$1,550
Annual Limit
$6,100
$6,240

 

Estimated Average Monthly Social Security Benefits Payable in January 2008:
Before
2.3% COLA
After
2.3% COLA
All Retired Workers
$1,055
$1,079
Aged Couple, Both Receiving Benefits
$1,722
$1,761
Widowed Mother and Two Children
$2,192
$2,243
Aged Widow(er) Alone
$1,017
$1,041
Disabled Worker, Spouse and One or More Children
$1,652
$1,690
All Disabled Workers
$  981
$1,004

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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