We owe taxes this year. Joy! Higher prices at the pump, grocery store, property tax, insurance, and federal taxes! The increase we got in '23 and now a whopping $59/mo is definitely not enough to pay what we owe on taxes. Thanks Joe!
No relief for seniors as big drop forecasted for Social Security COLA
More seniors paying taxes on Social Security benefits
Seniors drawing Social Security benefits could see them increase by as much as 2.5%, trailing moderating inflation figures, according to one early estimate.
The Congressional Budget Office's (CBO) estimate of 2.5% comes just above the 1.75% cost of living adjustment (COLA) that the Senior Citizens League (TSCL) is forecasting for 2025. TSCL's COLA estimates fluctuate based on the most recent CPI data.
Beneficiaries saw an extra $59 monthly starting this January based on the 3.4% COLA for 2024. The adjustment is lower than in previous years because of moderating inflation. Recipients received increases of 8.7% for 2023 and 5.9% for 2022, which were the largest since the early 1980s because of record-high inflation.
"This is the forecast based on data through January 2024 that was released today, and the final COLA for 2025 is likely to be different from the estimates because the COLA is calculated on the average rate of inflation during the third quarter, which is compared against the third quarter a year ago," TSCL stated. "In other words, there are another eight months of data to come in, and a lot could change."
https://www.foxbusiness.com/personal-finance/social-security-cola-drop-impact-inflation
