Changes that took effect in August 2024
Social Security made several operational and payment changes in August 2024. The most visible change for most people was the August cost-of-living adjustment (COLA), which increased monthly payments by 3.2 percent. This was the third consecutive year of COLA increases, though smaller than the 8.7 percent jump in 2023.
Beyond the payment increase, the Social Security Administration (SSA) changed how it handles work-related earnings for people receiving benefits before full retirement age. The earnings test — the rule that reduces your benefit if you earn above a certain amount — now applies a higher threshold. For 2024, if you are under full retirement age for the entire year, SSA deducts $1 in benefits for every $2 you earn above $23,400. In the year you reach full retirement age, the limit rises to $62,160, with a $1 reduction for every $3 earned above that amount until the month you turn full retirement age.
Key Takeaways
- Monthly Social Security payments increased by 3.2 percent in August 2024 due to the annual cost-of-living adjustment.
- The earnings test threshold for 2024 is $23,400 if you are under full retirement age; SSA reduces your benefit by $1 for every $2 you earn above this amount.
- If you reach full retirement age during 2024, the earnings limit jumps to $62,160 in the months before your birthday.
- SSA expanded online account services in August, allowing more people to view earnings records and update direct deposit information without calling.
- The maximum earnings subject to Social Security tax increased to $168,600 for 2024, affecting self-employed workers and high-wage earners.
How the earnings test affects your August payment
If you receive Social Security retirement or survivor benefits and are not yet at full retirement age, the earnings test may reduce your payment. The reduction is automatic — SSA does not require you to report your earnings each month, but you must report them when you file your tax return or when SSA requests them.
The reduction applies only to work earnings, not to investment income, pensions, or other non-work sources. If you earned $30,000 in 2024 and are under full retirement age, you would exceed the $23,400 threshold by $6,600. SSA would deduct $3,300 from your annual benefits ($1 for every $2 over the limit). This reduction is spread across your monthly payments, so you would receive less each month for the remainder of 2024.
Once you reach full retirement age, the earnings test no longer applies, and you can earn any amount without a reduction to your benefit. The month you reach full retirement age, SSA counts only earnings before that month toward the test.
Direct deposit and account access changes
In August 2024, SSA expanded its online portal, my Social Security, to include new functions. You can now update your direct deposit information, view your complete earnings record, and request a replacement Social Security card through the portal without visiting a field office or calling 1-800-772-1213.
To use these services, you must create a my Social Security account with a username and password or sign in using Login.gov. The portal also shows your current benefit amount, your payment schedule, and any work history SSA has on file. If you spot an error in your earnings record, you can request a correction through the portal, though SSA will ask for documentation such as tax returns or W-2 forms.
Changes to the maximum taxable earnings
For 2024, the maximum amount of earnings subject to Social Security tax increased to $168,600. This affects workers and self-employed people who earn above this amount. Employers and employees each pay 6.2 percent of wages up to this cap; self-employed workers pay 12.4 percent on net self-employment income up to the same cap.
Earnings above $168,600 are not subject to Social Security tax and do not count toward your future benefit amount. This cap changes each year based on national wage trends. High-income earners and self-employed people with substantial income should verify with their accountant or payroll provider that the correct amount is being withheld.
Supplemental Security Income (SSI) payment changes
Supplemental Security Income recipients also received the 3.2 percent increase in August 2024. For 2024, the federal SSI payment for an individual is $943 per month, and for a couple it is $1,415 per month. These amounts are the maximum; your actual payment may be lower if you have other income or resources.
SSI has strict rules about what counts as income and resources. Unearned income (such as gifts or other benefits) reduces your SSI payment dollar-for-dollar above a $65 monthly exclusion. Earned income from work is treated more favorably — SSA excludes the first $65 per month plus half of remaining earnings. If you receive SSI and start working, report your earnings to SSA within 10 days to avoid an overpayment.
Medicare premium adjustments tied to Social Security
Because Social Security payments increased in August, Medicare Part B and Part D premiums for 2024 were recalculated. Most people who receive both Social Security and Medicare have their premiums deducted directly from their benefit payment. If your benefit increased, your net payment after premiums may have changed.
For 2024, the standard Medicare Part B premium is $164.90 per month, though higher-income beneficiaries pay more through income-related monthly adjustment amounts (IRMAA). Part D premiums vary by plan and region. If you believe your premium was calculated incorrectly, contact Medicare at 1-800-MEDICARE or your local Social Security office.
Representative payee and work incentive updates
In August 2024, SSA clarified its rules for representative payees — people appointed to manage benefits for beneficiaries who cannot manage their own funds. Representative payees must now submit annual accounting reports online through a new portal, reducing the need for paper forms and in-person visits.
SSA also updated its work incentive programs for people receiving disability benefits (SSDI). The Ticket to Work program and the Plan to Achieve Self-Support (PASS) program both expanded their earnings thresholds and work incentive periods. If you receive SSDI and want to return to work, contact your local SSA office or visit the Ticket to Work website at choosework.ssa.gov to learn about these programs.
Frequently Asked Questions
Will my Social Security payment go down if I work?
Only if you are under full retirement age and earn more than $23,400 in 2024. SSA reduces your benefit by $1 for every $2 you earn above that amount. Once you reach full retirement age, you can earn any amount without a reduction. Report your earnings on your tax return or when SSA requests them.
How do I check if my earnings record is correct?
Sign into my Social Security at ssa.gov and select "Earnings Record" to view your complete work history. If you see an error, request a correction through the portal and provide documentation such as W-2 forms or tax returns. SSA will investigate and correct the record if the error is confirmed.
What is the difference between Social Security and Supplemental Security Income?
Social Security retirement and disability benefits are based on your work history and contributions. SSI is a needs-based program for people with low income and limited resources, regardless of work history. Both programs received the 3.2 percent increase in August 2024, but SSI has stricter income and resource limits.
Can I update my direct deposit information online?
Yes. Log into my Social Security, select "Payment Information," and update your bank account details. Changes usually take one to two business days. You can also call 1-800-772-1213 or visit a local SSA office to update your direct deposit information.
Do earnings above the Social Security tax cap count toward my future benefit?
No. For 2024, only earnings up to $168,600 are subject to Social Security tax and count toward your benefit calculation. Earnings above this amount do not increase your future benefit amount, though you still pay income tax on them.