SSI 2023: Details You Need To Keep In Mind

stimulus check
stimulus check

In just two days, millions of SSI users will get their second $914 check that has been increased for 2023More than a month after recipients received their final payments on December 30, the payouts will start to be distributed on February 1.

Beneficiaries of SSI are typically paid on the first of each month, however, there are exceptions due to weekends or holidays. Payments for 2023 are valued at $914, up from the $841 each month that beneficiaries cashed in during the previous year. This is a result of the 8.7% cost of living adjustment (COLA). 33 states are also providing extra payments on top of federal benefits.

What is SSI?

The Social Security Administration (SSA) administers SSI, a program that is intended to assist persons over 65, as well as those who are blind or disabled and have low to no income. Your SSI payout will typically be lower the more money you have.

Although a variety of payments and earnings are excluded from the definition of “income,” this includes the first $20 of the majority of monthly income. Remuneration, unearned income, in-kind revenue, and deemed income are the four categories of income for SSI. On the SSA website, you can precisely check what isn’t considered income.

COLA Impact On Social Security

Social Security benefits for retirees are determined by the cost-of-living adjustment (COLA), which will rise by 8.7 percent in 2023. The highest monthly payment is $4,555, with recipients receiving an average of $1,827.

Since the first of the month happened on a Sunday and a holiday in 2023, those who also get SSI checks earned their first payment of the year on December 30. For the remainder of the year, SSI beneficiaries may still anticipate receiving their payments on the first of the month.

When does Social Security send payments?

The third wave of January Social Security payments is expected to arrive in bank accounts the following week, with claimants potentially receiving up to $4,555. The recipients’ birthdays determine the Social Security payment schedule.

Those with birthdays between the first and tenth of the month were supposed to get paid on the eleventh, but those born between the eleventh and the twentieth did get paid on the eighteenth.

On Wednesday, January 25, the final batch of Social Security payments will be mailed to anyone whose birthdates fall after the 21st of the month.

SSI Benefits In Jeopardy

By 2035, SS payouts are expected to decrease by 23%. According to a Social Security Administration estimate, payouts will decrease by 23% by 2035. This is based on forecasts for the program with no additional financing.

Given that Social Security accounts for a sizable portion of post-retirement income, this might drastically reduce future Americans’ capacity to retire comfortably.

Despite high inflation rates, 46 cities and states have created their own universal basic income programs for their citizens. Residents will be able to use UBI without any restrictions. It consists of a collection of recurring payments.

Some have income requirements and are paid on a monthly or annual basis. At least 40 cases of UBI have been uncovered by The Sun, and in early 2023, more cities may approve similar initiatives. Investopedia reports that the Social Security Administration made erroneous payments totaling $7.9 billion in 2019.

Making fraudulent claims or omitting to disclose information to the agency that may have affected eligibility are both examples of fraud. Fraud also includes a family or friend misusing or mismanaging benefits on someone’s behalf.

As expenses continue to climb, low-wage people are beginning to feel the effects of financial stress. Low-income occupations are defined as those that pay less than $17 per hour or up to $35,360 annually, according to Financial Health Network research.

The majority of low-wage workers struggle to save money, get good insurance and have trouble making ends meet. According to the study, 13% of low-wage workers claim to be in good financial standing.

One of the states that have acted independently in Vermont. This is a result of Congress’s failure to renew the increased child tax credits, which expired at the end of last year. For households making $125,000 or less, Republican Governor Phil Scott approved a $1,000 child tax credit for each kid under the age of five.

If a family earned more than $125,000, they would forfeit $20 for every $1,000 beyond that amount. The SSA website states that recipients of Social Security or SSI may be eligible for the CTC.

Based on the eligible children, you can submit a claim to the IRS for the credit. A qualified person is not permitted to receive SSDI and retirement benefits from the Social Security system at the same time. A person may, however, receive both SSDI and Supplemental Security Income (SSI) payments at the same time.

If you think you are eligible for both SSDI and SSI, you should evaluate the monthly benefits to see which one would provide you with the most income. Every year, Social Security benefits are received by around 70 million Americans. You must be aged or disabled to qualify. The benefits are received by about 90% of people 65 and older, and they account for around 33% of their income.

Although you can begin receiving Social Security at age 62, your payments start to rise at 67. You start to accumulate delayed retirement credits that increase your overall benefit when benefits are postponed between your full retirement age (FRA) and age 70. The credits stop at age 70, therefore benefits for retirees are at their maximum at this age.

Your monthly benefit payment will increase first. According to the Social Security Administration, if your FRA is 67, you would receive 124% of your full benefit every check by waiting until you are 70.

According to recent research from the Center for Retirement Research at Boston College, when garnishments start up again, delinquent borrowers’ Social Security benefits will be reduced by around $2,500 annually. This equates to roughly 4% to 6% of household income.