Congress has legislated increases in Senior benefit payments based on increases in the Consumer Price Index. If you receive monthly Senior benefit payments, there is a 1.5% cost-of-living adjustment starting with your December, 2013 benefits paid in January, 2014.
Specific cost-of-living increases are based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers calculated by the Bureau of Labor Statistics. The earnings limit for people turning 66 in 2014 will be $41,800. $1 in benefits is deducted for each $3 earned over $41,800. There is no limit on earnings for workers who are at full retirement age for the entire year. Full retirement is age 66 for people born in 1943 through 1954. The earnings limit for workers younger than full retirement age is $15,480. $1 in benefits is deducted for each $2 earned over $15,480.
In addition to receiving extra payment each month, you may now earn more income without offsetting your benefits because the earnings test cut-off also increased. Based on the increase in average wages, the maximum amount of earnings subject to Senior benefit tax increased to $117,000 (from $113,700).