Social Security COLA for 2013

There is some good news and some bad news in the Social Security Administration’s recent announcement regarding the Cost of Living Adjustment for 2013.   The (moderately) good news is that Social Security recipients will receive a 1.7% increase in their checks in 2013.

Social Security

More relevant for parents of twins and triplets is the bad news:  workers will now be taxed on a base of $113,700, up from $110,100 in 2012.  That’s about a 3.27% increase, if you’re keeping score at home.

Furthermore, by way of reminder, we’ve been enjoying a temporary tax break on Social Security contributions over the last couple of years, and that relief is set to expire on December 31.  If you earn at least $113,700, the net result of these changes is that you’ll pay $7049.20 into Social Security in 2013, versus $4642.20 in 2012.  That is an increase of more than 52%.

Look here for more on Social Security cost of living adjustments.

 

About Kevin O'Reilly, CFP®

Kevin O'Reilly, CFP®, is a financial advisor who specializes in working with parents of twins and triplets. Have a financial question? Ask Kevin!

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