Social Security revealed their plans for 2025 — including raising the amount of money that you can be taxed on each year.
Average wages subject to Social Security taxes will be rising in 2025. Meaning, if you make less than or at least $176,100 in 2025, you will be subject to the tax.
In 2024, the salary figure for taxation was $168,600.
This announcement came in conjunction with the unveiling of 2025’s 2.5% cost of living adjustment (COLA) after months of speculation and inflation.
That totals out to over 72.5 million people across the nation getting around a $50 boost in their monthly Social Security check by January 2025 the latest, according to a written statement.
“Social Security benefits and SSI payments will increase in 2025, helping tens of millions of people keep up with expenses even as inflation has started to cool,” said Martin O’Malley, commissioner of Social Security.
“Nearly 68 million Social Security beneficiaries will see a 2.5% cost-of-living adjustment (COLA) beginning in January 2025. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2024.(Note: Some people receive both Social Security benefits and SSI [Social Security Income]),” the statement detailed.
This percentage is lower than 2024’s COLA, which came out to be 3.2%.
On the other hand, this figure is just a hair below the average COLA update, which is around 2.6%.
Recipients will also be getting “a newly designed and improved COLA notice that makes it easier for customers to find the information they need most. The simplified COLA notice is now only one page, uses plain and personalized language, and provides exact dates and dollar amounts of a person’s new benefit amount and any deductions.”
