Seniors could lose money from COLA increases under Social Security

According to one seniors advocacy group, the 2023 cost-of-living adjustment (COLA)

For Social Security beneficiaries will be the highest in decades due to this year's soaring inflation rate.

For retirees struggling to make ends meet, that should be good news, but it could be bad for others.

A sharp COLA increase would push some Social Security beneficiaries into higher tax brackets, increasing their tax burden.

Based on inflation numbers showing the Consumer Price Index rose 9.1% year-over-year in June, 

The nonpartisan Senior Citizens League estimates the COLA for 2023 will be 10.5%.

The current average retiree benefit of $1,668 would increase by $175.10 with a 10.5% COLA increase. 

If lawmakers don't change the income thresholds for Social Security beneficiaries, that could have negative tax consequences.

According to the Washington Times, Social Security benefits haven't changed since 1984.

Retirees must pay taxes on their benefits if their income and payments exceed $25,000 for 

A single person or $32,000 for a married couple. According to the Congressional Budget Office, 

Social Security benefits will be taxed by 10% this year and another 10% in 2023.

According to Mary Johnson, Senior Citizen League's Social Security and Medicare policy analyst,

Thousands of retirees may have to start paying taxes on their benefits in 2023.

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