Social Security may get historic COLA, but beware the tax implications

The Senior Citizens League released a report Sept. 13 predicting the Social Security COLA for 2023 will be 8.7%. If that proves accurate when the Social Security Administration announces its official COLA in mid-October, it would raise the current average annual benefit of $1,656 by $144.10. It would also mark the largest adjustment seen in four decades.

Such an increase would no doubt be welcome to many retirees and other benefit recipients who have had to make do with the often-anemic adjustments of recent years. But an increase in Social Security benefits might also subject more incomes to federal taxes.

For more on the tax implications: COLA projection promises big Social Security bump, stokes tax fears

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