(CBS Local)- The Social Security Administration announced Tuesday that benefits for about 70 million Americans will increase by 1.3% in 2021. The increase in benefits is a cost-of-living adjustment that will begin in January of the new year.

The Social Security Act ties the annual cost-of-living adjustment increases to the Consumer Price Index, which is determined by the Department of Labor’s Bureau of Labor Statistics.

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Most Security and SSI beneficiaries will be able to view their cost-of-living adjustment notice online through their personal My Security account. In order to create an online account, beneficiaries can go to www.socialsecurity.gov/myaccount.

For more information on how the cost-of-living adjustment increases are calculated, visit www.socialsecurity.gov/cola.

Provided by the SSA, other important information for the 2021 year is as follows.

Tax Rate 2020 2021
Employee 7.65% 7.65%
Self-Employed 15.30% 15.30%

The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes.

2020 2021
Maximum Taxable Earnings
Social Security (OASDI only) $137,700 $142,800
Medicare (HI only) No Limit
Quarter of Coverage
$1,410 $1,470
Retirement Earnings Test Exempt Amounts
Under full retirement age $18,240/yr.

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($1,520/mo.)

$18,960/yr.

($1,580/mo.)

NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.
The year an individual reaches full retirement age $48,600/yr.

($4,050/mo.)

$50,520/yr.

($4,210/mo.)

NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.
Beginning the month an individual attains full retirement age None

 

2020 2021
Social Security Disability Thresholds
Substantial Gainful Activity (SGA)
Non-Blind $1,260/mo. $1,310/mo.
Blind $2,110/mo. $2,190/mo.
Trial Work Period (TWP) $ 910/mo. $ 940/mo.
Maximum Social Security Benefit: Worker Retiring at Full Retirement Age
$3,011/mo. $3,148/mo.
SSI Federal Payment Standard
Individual $ 783/mo. $ 794/mo.
Couple $1,175/mo. $1,191/mo.
SSI Resource Limits
Individual $2,000 $2,000
Couple $3,000 $3,000
SSI Student Exclusion
Monthly limit $1,900 $1,930
Annual limit $7,670 $7,770
Estimated Average Monthly Social Security Benefits Payable in January 2021
Before

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1.3% COLA

After

1.3% COLA

All Retired Workers $1,523 $1,543
Aged Couple, Both Receiving Benefits $2,563 $2,596
Widowed Mother and Two Children $2,962 $3,001
Aged Widow(er) Alone $1,434 $1,453
Disabled Worker, Spouse and One or More Children $2,195 $2,224
All Disabled Workers $1,261 $1,277