Every year as Americans get ready to welcome the new year, they prepare to welcoming financial changes as well.
This year is no different than any other year, aside from the pandemic and the financial issues it’s caused.
Regardless, 2022 is coming and people are preparing for the changes that will impact them the most.
Here are 11 major financial changes 2022 will see
The federal student loan pause will come to an end.
When the pandemic started, the United States temporarily paused paying off student loans.
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That pause will end Jan. 31 and Americans will go back to paying them.
The announcement came in August when it was stated that it would be the final extension.
Payments will start back up Feb. 1.
The final batches of California’s Golden State Stimulus checks will be sent by Jan. 11, 2022.
Residents who qualify are receiving up to $1,100.
There might be a round three next year thanks to surplus funds in the state of California, but it’s not a guarantee.
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January will be the first month since July to no longer have advanced child tax credit payments.
The final payment is Dec. 15, so families may need to realign their budgets after getting used to the monthly payments.
Many will see the second half of their child tax credits when they file their taxes, some worth up to $1,800 per child.
There are also several changes to Social Security coming in 2022.
First, the COLA increase of 5.9% is going to give Social Security recipients larger checks in 2022.
The average check will increase by about $92 on average.
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Anyone collecting SSDI will see an increase as well. Their monthly benefits will go up by around $76 per month.
The earnings limit will rise for Social Security recipients that collect benefits while still working.
This means in 2022, for every dollar you make past $19,560, the SSA will withhold $1 for every $2 made.
If you reach full retirement age before collecting Social Security, you can make up to $51,960. The SSA will withhold $1 for every $3 if you choose to work.
The credit threshold will rise from $1,470 to $1,510 for those earning credits during their working years.
You need at least 40 credits to retire and can collect 4 per year.
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More taxes will be paid into Social Security next year.
In 2021, high earners only needed to pay taxes on the first $142,800 they made.
Next year high earners will pay taxes on the first $147,000 of their wages.
The IRS is changing some things too, like their standard deduction.
In 2022 it will rise from $12,550 to $12,950 for single filers.
It will be $25,900 for married joint filers.
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Medicare premiums will rise next year, with Part B rising by over $21 per month.
The deductible for Part B will jump from $203 to $233.
Medicare Part A will see and increase as well, with the deductible rising to $1,556. That’s a $72 increase from 2021.
Lastly, a major financial change for 2022 will be states raising their minimum wage across the country.
Around 20 states are looking at raising their wages as the federal minimum wage stays at $7.25.
California will be the first state with a $15 minimum wage.
Related: 20 states are increasing minimum wage in 2022, will you make more money?
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