by Ryan Mayer, CBS Local

(CBS Local) – The Social Security Administration announced Tuesday that benefits for about 70 million Americans will increase by 1.3% in 2021. The increase in benefits is a cost-of-living adjustment that will begin in January of the new year.

The Social Security Act ties the annual cost-of-living adjustment increases to the Consumer Price Index, which is determined by the Department of Labor’s Bureau of Labor Statistics.

Most Security and SSI beneficiaries will be able to view their cost-of-living adjustment notice online through their personal My Security account. In order to create an online account, beneficiaries can go to www.socialsecurity.gov/myaccount.

For more information on how the cost-of-living adjustment increases are calculated, visit www.socialsecurity.gov/cola.

Provided by the SSA, other important information for the 2021 year is as follows.

Tax Rate 2020 2021
Employee 7.65% 7.65%
Self-Employed 15.30% 15.30%

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. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes.

2020 2021
Maximum Taxable Earnings
Social Security (OASDI only) $137,700 $142,800
Medicare (HI only) No Limit
Quarter of Coverage
$1,410 $1,470
Retirement Earnings Test Exempt Amounts
Under full retirement age $18,240/yr.

($1,520/mo.)

$18,960/yr.

($1,580/mo.)

NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
The year an individual reaches full retirement age $48,600/yr.

($4,050/mo.)

$50,520/yr.

($4,210/mo.)

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.
Beginning the month an individual attains full retirement age None

 

2020 2021
Social Security Disability Thresholds
Substantial Gainful Activity (SGA)
Non-Blind $1,260/mo. $1,310/mo.
Blind $2,110/mo. $2,190/mo.
Trial Work Period (TWP) $ 910/mo. $ 940/mo.
Maximum Social Security Benefit: Worker Retiring at Full Retirement Age
$3,011/mo. $3,148/mo.
SSI Federal Payment Standard
Individual $ 783/mo. $ 794/mo.
Couple $1,175/mo. $1,191/mo.
SSI Resource Limits
Individual $2,000 $2,000
Couple $3,000 $3,000
SSI Student Exclusion
Monthly limit $1,900 $1,930
Annual limit $7,670 $7,770
Estimated Average Monthly Social Security Benefits Payable in January 2021
Before

1.3% COLA

After

1.3% COLA

All Retired Workers $1,523 $1,543
Aged Couple, Both Receiving Benefits $2,563 $2,596
Widowed Mother and Two Children $2,962 $3,001
Aged Widow(er) Alone $1,434 $1,453
Disabled Worker, Spouse and One or More Children $2,195 $2,224
All Disabled Workers $1,261 $1,277