On October 16, 2012, the Social Security Administration (SSA) announced that there will be a 1.7% COLA for Social Security benefits and SSI payments in the year 2013. The COLA actually takes effect on December 1, 2012, and will be seen by Social Security recipients starting with their benefits received in January 2013.
SSA also announced that the wage limit for the social security tax will increase to $113,700 in 2013, up $3,600 from the $110,100 taxable limit in effect for 2012. The temporary 2% reduction in the social security tax rate is scheduled to expire at the end of 2012, so unless Congress acts to extend or otherwise adjust that rate, it will increase from 4.2% to 6.2% on wage earners and the self-employed as of January 1, 2013.
As of this date Medicare has not yet announced the amount of the "standard" Medicare Part B premium for the year 2013. An announcement about this should be made by Medicare next month, but unofficial predictions are that the premium will increase by about $7 per month above the current level. In 2012 the "standard" Medicare Part B premium has been $99.90 per month. As has been the case since 2007, however, Medicare Part B premiums for people with higher incomes will be sharply higher.
SSA also announced that the wage limit for the social security tax will increase to $113,700 in 2013, up $3,600 from the $110,100 taxable limit in effect for 2012. The temporary 2% reduction in the social security tax rate is scheduled to expire at the end of 2012, so unless Congress acts to extend or otherwise adjust that rate, it will increase from 4.2% to 6.2% on wage earners and the self-employed as of January 1, 2013.
As of this date Medicare has not yet announced the amount of the "standard" Medicare Part B premium for the year 2013. An announcement about this should be made by Medicare next month, but unofficial predictions are that the premium will increase by about $7 per month above the current level. In 2012 the "standard" Medicare Part B premium has been $99.90 per month. As has been the case since 2007, however, Medicare Part B premiums for people with higher incomes will be sharply higher.