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Social Security will get big COLA boost in 2022, but Medicare, income tax implications could be severe for seniors

Social security checks to American seniors are about to increase in 2022. But it might not all be good news for those collecting social security benefits.

The annual Cost of Living Adjustment in January is expected to be 6%. However, that could put some seniors over the thresholds that determine Medicare Part B premiums, it could also have an impact on how much seniors have to pay in income taxes.

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The steep boost in Cost of Living Adjustment is coming because of inflation brought on by the coronavirus pandemic. While it’s intended to keep purchasing power among beneficiaries- the necessity of a major bump could cost seniors money.

Medicare Part B premiums are deducted from monthly Social Security checks. This is the part of a person’s health insurance that covers physician and outpatient services.

“The impact of rising Part B premiums would be even greater for high income individuals, because their premiums constitute a larger share of their Social Security benefits,” Alicia H. Munnell and Patrick Hubbard wrote in a Boston College analysis of Social Security and Medicare Part B.



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