11 major changes for the money in 2022; Social Security, Medicare and Student Loans Are All Affected
Each year, as Americans prepare to welcome the New Year, they also prepare to welcome financial changes.
This year is no different from any other, apart from the pandemic and the financial problems it engenders.
Either way, 2022 is approaching and people are bracing for the changes that will impact them the most.
Here are 11 major financial changes 2022 will see
The federal student loan hiatus will end.
When the pandemic began, the United States temporarily suspended student loan repayments.
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This break will end on January 31 and the Americans will start paying them again.
The announcement was made in August when it was declared to be the last expansion.
Payments will resume on February 1.
The final batches of California Golden State Stimulus checks will be mailed out by January 11, 2022.
Eligible residents receive up to $ 1,100.
There could be a round three next year thanks to surplus funds from the state of California, but that’s no guarantee.
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January will be the first month since July to no longer have child tax credit advance payments.
The final payment is December 15, so families may need to realign their budgets after getting used to the monthly payments.
Many will see the second half of their child tax credits when they file their income tax returns, some as high as $ 1,800 per child.
There are also several social security changes coming in 2022.
First, the 5.9% increase in COLA will give Social Security recipients larger checks in 2022.
The average check will increase by about $ 92 on average.
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Anyone collecting SSDI will also see an increase. Their monthly benefits will increase by approximately $ 76 per month.
The income limit will increase for Social Security recipients who receive benefits while working.
This means that in 2022, for every dollar you earn over $ 19,560, the SSA will withhold $ 1 for every $ 2 earned.
If you reach full retirement age before you collect Social Security, you can earn up to $ 51,960. The SSA will withhold $ 1 for every $ 3 if you choose to work.
The credit threshold will drop from $ 1,470 to $ 1,510 for those who earn credits during their working years.
You need at least 40 credits to retire and can collect 4 per year.
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More taxes will be paid to Social Security next year.
In 2021, top earners only had to pay taxes on the first $ 142,800 they earned.
Next year, top earners will pay tax on the first $ 147,000 of their salary.
The IRS also changes some things, like their standard deduction.
In 2022, it will drop from $ 12,550 to $ 12,950 for single filers.
This will be $ 25,900 for married spousal filers.
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Medicare premiums will increase next year, with Part B increasing by more than $ 21 per month.
The deductible for Part B will increase from $ 203 to $ 233.
Medicare Part A will see and increase as well, increasing the deductible to $ 1,556. That’s an increase of $ 72 from 2021.
Finally, a major financial change for 2022 will be that states will increase their minimum wages across the country.
About 20 states are considering increasing their wages while the federal minimum wage remains at $ 7.25.
California will be the first state with a minimum wage of $ 15.
Related: 20 States Raise Minimum Wage In 2022, Will You Make More Money?
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