Social Security COLA for 2023 Estimated at 8.7%

In addition, 21% say that until 2022, their household income was below the income thresholds that can make up to 85% of Social Security benefits subject to federal income taxes. This group worries they will pay tax on a portion of their Social Security benefits for the first time in the coming tax season.

A COLA of 8.7% would present similar ongoing increased tax liabilities for next year. The group polled 626 people, 96% of whom currently receive Social Security benefits, to generate the responses on Social Security tax concerns. The surveying is ongoing.

Medicare Premiums

The government tends to announce the Medicare Part B premium and other costs in mid-November. Medicare Part B premiums may not grow by very much in 2023, according to Johnson.

The Medicare Trustees forecast in their 2022 annual report that the standard Part B premium in 2023 would stay the same as it is now, $170.10. The Centers for Medicare and Medicaid Services recently said it would use excess Part B premium charges from this year, determined after a reassessment, to reduce the Part B premium in 2023.

August Inflation Numbers

The gasoline index fell 10.6% in August after a 7.7% decline in July, mostly offsetting increases in the shelter, food and medical care indexes; these areas led the overall rise in the all-prices index for the month, the Bureau of Labor Statistics reported. After falling 4.6% in July, the energy index fell 5% in August, with the gasoline index decline and increases in the electricity and natural gas indexes.

The food index rose 0.8% in August after a 1.1% gain the previous month, the smallest monthly increase in that category since December 2021. The food at home index rose 0.7% in August, with all six major grocery food group indexes increasing, after a 1.3% increase in July, the bureau reported. The food away from home index increased 0.9% in August, slightly more than the previous month.

The index for all items excluding food and energy rose 0.6% in August, a greater increase than in July, the BLS reported. Indexes for shelter, medical care, household furnishings and operations, new vehicles, motor vehicle insurance and education were among those rising dur the month, while airfares, communication and used vehicles were among those that declined.

For the 12 months ended in August, inflation on items excluding food and energy increased 6.3%, a higher increase than the 5.9% logged for the year ending in July.

The BLS stated that over the past 12 months the energy index rose 23.8%, a smaller increase than the 32.9% rise for the year ended in July. The food index gained 11.4% over the same period, the largest increase since the period ending May 1979.

The shelter index rose 0.7% in August, slightly more than the 0.5% in July. For the last 12 months, the shelter index increased 6.2%, contributing about 40% to the overall increase in all items excluding food and energy.