Social Security changes each year. Most of Social Security's numbers are based on inflation for the previous year. Prices go up, so Social Security changes its numbers.
Here are 2 important Social Security changes for 2023:
(1) Benefit increase. The Cost of Living Adjustment (COLA) for 2023 will be 8.7 percent. This is the largest increase in 40 years.
(2) Definition of Substantial Gainful Activity (SGA) changes in 2023.
SGA is the amount of wages or work income that will make you ineligible for disability benefits. In other words, if you are working and earning SGA or above, you cannot be disabled due to your work.
2022: The SGA limit was $1,350 per month. If you work and earn at least that monthly amount you are gainfully employed and cannot get disabiity benefits.
2023: The SGA limit increases to $1,470 per month. As long as you earn below $1,470 per month, you are not gainfully employed and may apply for disability benefits.
NOTE: The SGA refers only to income from work: wages, salary, commission, tips or self-employment. SGA does not consider investment income, rental income, child support, alimony, retirement pay, etc. It only applies to individuals who are working.
Both of these changes will make it easier for Social Security recipients or potential recipients to make ends meet. Changes take effect in January 2023.
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