2015 Social Security cost-of-living adjustment will be 1.7%

The Social Security Administration (SSA) has announced a 1.7% cost-of-living-adjustment (COLA) for Social Security benefits received by beneficiaries starting in January 2015.

The increase will begin for more than 58 million Social Security beneficiaries with benefits that are received in January 2015. Increased payments for more than 8 million SSI beneficiaries will begin on December 31, 2014.

The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $118,500 for 2015, up from $117,000 for 2014. Of the estimated 168 million workers who will pay Social Security taxes in 2015, about 10 million will pay higher taxes as a result of the increase in the taxable maximum.

Source: Social Security News Release and Fact Sheet.

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