2018 Social Security COLA Announced! with Bonus Calculation Tutorial

October 15, 2017

Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 66 million Americans will increase 2.0 percent in 2018.

 

The 2.0 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 61 million Social Security beneficiaries in January 2018. Increased payments to more than 8 million SSI beneficiaries will begin on December 29, 2017. (Note: some people receive both Social Security and SSI benefits).

 

 

Click HERE for the announcement from SSA

 

Medicare Information
 

Information about Medicare changes for 2018, when announced, will be available at www.Medicare.gov.

 

Below is an excerpt from the Costello Compliance webinar Qualifying Households for Tax Credit Housing. For a schedule of all upcoming in-person and webinar Costello training sessions see www.costellocompliance.eventbrite.com.

 

 COLA Calculation Tutorial

 

Important points:

  • Social Security verifications received so far in 2017 will not reflect the 2018 COLA.

  • Income certifications that include social security income in 2018 but that had income verified prior to the COLA announcement will need to include the COLA by doing an extra calculation.

Example #1

A social security recipient is anticipated to move into an affordable housing unit on November 1, 2017. In September, it was verified that she had 2017 monthly social security benefit income of $931. The 2% COLA was announced on October 13, 2017.

 

Annual Income Calculation:

 

Step 1: Calculate 2017 income.

              $931 x 2 = $1,862 (income for November and December 2017)

Step 2: Calculate the 2018 monthly income with COLA.

              $931 x 1.02 = $949.62 (2018 monthly benefit)

Step 3: Calculate total 2018 income.

              $949.62 x 10 = $ 9,496.20 (income for January-October 2018)

Step 4: Add 2017 and 2018 benefit income

              $1,862 + $ 9,526.80 = $11,358.20 annual benefit income

 

Example #2

A SSI recipient is anticipated to move into an affordable housing unit on December 1, 2017. When his income is being verified, he brings in the benefit letter that he received in October 2017 that informed of the 2% COLA for 2018. The monthly SSI benefit listed on the letter is $750.

 

Annual Income Calculation:

 

No calculation is necessary, as the COLA is already included in the letter.

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