Changes Take Effect in 2020 for Social Security
PUBLISHED BY: David W. Magann, PA
Tampa, FL (Law Firm Newswire) January 20, 2020 – Each year the Social Security Administration (SSA) makes changes to the program. Changes for 2020 include the annual cost-of-living adjustment for Social Security benefits and a boost in the amount someone can earn without forfeiting any benefits.
Here are some changes taking effect in 2020:
Cost of living adjustment: Recipients of Social Security benefits received a 1.6 percent increase for 2020. The increase started on December 31, 2019, for Supplemental Security Income beneficiaries.
Social Security Disability Insurance (SSDI) and Social Security Retirement recipients can look for the raise in their January 2020 payments.
SSDI eligibility: To be eligible for SSDI, a disabled person must show that they are unable to earn a certain amount of money.
Substantial Gainful Activity (SGA) — due to the limitation caused by their disability. In 2020, the SGA level is $1,260 for non-blind individuals and $2,110 for blind individuals.
Full retirement age: Initially, Social Security recipients could claim full retirement benefits at age 65. Over the years, the eligibility age for full retirement has gone up. For people who turn 62 in 2020, the full retirement age is 66 years and two months. For survival benefits, the full retirement age is 66.
Earnings limits: Two sets of earnings limits apply to early retirees. If a person is younger than full retirement age throughout 2020, they can earn up to $18,240 during the year before having to give up any Social Security benefits. If the person makes more than the limit, they lose $1 in annual benefits for every $2 of earnings over the limit. For example, if the person earns $20,240, $2,000 over the limit, they give up $1,000 in benefits. The $18,240 is $600 more than the amount set in 2019. If a person reaches full retirement age during 2020, they can earn up to $48,600, and they only lose $1 of benefits for every $3 in earnings over the limit. Earnings after the person reaches full retirement age do not count.
Trial work period for SSDI recipients: During a trial work period, SSDI recipients can work for nine months over 60 months without losing benefits. For 2020, the SSA considers a month during which the SSDI recipient receives $910 per month a trial work month
Learn more at http://www.floridasocialsecurity.com/.