Social Security COLA to Raise Taxes for Some Americans

Social Security benefits will rise 8.7% in 2023 to help retirees keep pace with inflation. While that is good news for most retirees, some will find the bigger checks come with a bigger tax bill.

Americans owe taxes on a portion of their Social Security benefits if they earn more than $25,000 as individuals, or $32,000 as couples. (When computing taxes on Social Security, the Internal Revenue Service counts half of a taxpayer’s benefits as part of their income.)